2 Min Read
KUALA LUMPUR, Feb 28 (Reuters) - Crude palm oil prices are expected to trade between 2,600-3,000 ringgit ($585-$675) per tonne until the second quarter this year, chief executive of Felda Global Ventures Holdings Bhd said on Tuesday.
The company said it expected an additional 600,000 tonnes of palm fresh fruit bunch (FFB) production this year, which would bring total FFB volume to 4.5 million tonnes in 2017.
"By the year 2020, we expect to achieve 5.3 million tonnes FFB production annually from existing landbank, a 36 percent increase from (our) 2016 achievement," CEO Zakaria Arshad said in a statement filed to the local stock exchange.
Felda Global, the world's third largest palm plantation operator, said net profit rose to 110.6 million ringgit in the fourth quarter ended December 2016 from 91.2 million ringgit a year earlier.
Revenue rose to 5.2 billion ringgit from 4.15 billion ringgit in the corresponding quarter the year before.
Benchmark palm oil prices have posted two consecutive weeks of declines, shedding nearly 9 percent since Feb. 13.
Palm oil output is forecast to recover this year as the dry weather effects of a crop damaging El Nino wear off.
$1 = 4.4380 ringgit Reporting by Emily Chow; Editing by Amrutha Gayathri