KUALA LUMPUR, Nov 23 (Reuters) - Malaysia’s Felda Global Ventures Holdings Bhd (FGV), the world’s third-largest palm plantation operator, on Thursday forecast a decline in palm oil prices next year on a likely rise in production.
It expects crude palm oil prices at 2,500 ringgit to 2,700 ringgit ($607 to $656) per tonne for the first half of 2018, Chief Executive Zakaria Arshad said at a media conference following the company’s third-quarter results.
The company sees prices at 2,600 ringgit 2,800 ringgit per tonne in the fourth quarter of this year.
Prices will drop next year as “a lot of competition will come from soyoil, and also on recovery of output,” Zakaria said.
FGV is targeting fresh fruit bunch production of 4.3 million tonnes by end 2017, with 2018 output seen at 4.86 million tonnes. ($1 = 4.1190 ringgit) (Reporting by Emily Chow; editing by Richard Pullin)