Malaysia’s Felda Global Ventures (FGV) chief executive Zakaria Arshad said today crude palm oil prices will average RM2,500 per tonne in 2016, up from RM2,275 last year.

FGV, which is the world’s third-largest palm plantation  operator, today reported a first-quarter net loss of RM65.5 million (US$16 million) due to low yields from a crop-damaging El Nino, compared with RM3.57 million in net profit over the same period last year.

Its revenue stood at RM3.76 billion versus RM2.7 billion at the end of March 2015.

The El Nino weather event brings dry weather across South-East Asia, denting palm’s fruit yields and lowering output in top producing countries Malaysia and Indonesia.

- Reuters