Malaysian benchmark crude palm oil (CPO) prices are likely to decline in 2022 due to a sharp increase in output, following the rise to US $1,300 per tonne in November 2021, Fitch Ratings says in a new report. According to Fitch, Indonesia’s monthly palm oil production continued to weaken over August-October 2021, compared with a year earlier, due to the lingering effects of poor fertilizer use and upkeep. “We expect output to increase with a likely improvement in fertiliser application and estate maintenance since 2H21 due to healthy price realisations and cash flows for producers,” it added in its report titled “Asian Crude Palm Oil Watch 4Q21.” Malaysian CPO output in November 2021 significantly improved compared with last year despite a shortage of foreign workers, and we expect production to rise further in 2022 due to an improvement in availability of labour. The La Nina weather pattern, which is highly likely to last until March 2022, could significantly impact global vegetable oil output and keep prices elevated in 2022, said the report. On the other hand, the resurgence of Covid-19 cases across the world could result in weaker demand from restaurants due to potential lockdowns, curbing prices, said the report. Meanwhile, Prof Dr Iqrar Ahmad Khan, Vice-Chancellor of University of Agriculture Faisalabad (UAF), has said that with soybean cultivation, Pakistan can save $5 billion from the imports bill of oilseeds and raw materials for poultry feed. Prof Dr Iqrar Ahmad highlighted the urgency of revitalising soybean cultivation in Pakistan. Next season, he will give his full support and lead the work of demonstrating maize-soybean strip intercropping technology in southern Punjab. “Intercropping is the only possible solution to soybean cultivation in Pakistan. In the coming season we are going to arrange large-scale demonstrations by progressive farmers to showcase this technology to the local farming community,” he said.