Malaysia marketing year (MY) 2020/21 CPO production estimate was pegged at 18.2 million tons, down 2% from the previous report and down 6% from MY 2019/20. Persistent rainfall negatively impacted monthly output and yields as workers ability to harvest been limited – according to the latest USDA July report.
The report also cited the additional persistent problems of labour shortage due to Covid related border closure and freeze in the hiring of foreign workers leading to a forecast of lower output in 2020-21. Foreign workers make up nearly 80% of Malaysia’s palm oil workforce especially in undertaking the fieldwork.
USDA’s market year for Malaysia palm oil is October through September.