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Small oil palm farmers in Malaysia and Indonesia, which together produce 85% of global palm oil, are cutting fertiliser use and replanting because prices have fallen about 30% this year. Malaysia's biodiesel association estimates 2020 palm oil output will fall 10% to about 18 million tonnes.
Fresh fruit bunch prices are around 330 ringgit a tonne.
Lower fertiliser application cuts yields six to twelve months later, which could tighten palm supply in 2021 and support prices once demand recovers.
reuters.comMei Mei ChuMay 20, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
