Heavy rains to hit Malaysian palm oil output again in December, says MPOB

Published 2024년 12월 13일

Tridge summary

Malaysia's palm oil production is predicted to decrease for the fourth month in a row in December due to heavy rainfall, with a potential reduction of 5% to 8% in crude palm oil (CPO) production and possibly as much as 10% to 20% if the flooding persists. This is due to damage to plantation infrastructure and difficulty in harvesting and transporting fresh fruit bundles from estates to mills. The Malaysian Palm Oil Board is closely monitoring the situation as the Malaysian Meteorological Department forecasts a second wave of floods. This could result in lower inventories and further drive up benchmark futures, which are already nearing their highest levels in about 2.5 years.

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Original content

KUALA LUMPUR/MUMBAI (Dec 13): Malaysia's palm oil production is set to fall for the fourth consecutive month in December as heavy rainfall hit harvesting in the world's second-largest producer of the tropical oil, the industry regulator told Reuters on Friday. Lower output in Malaysia would curb inventories in the country and further boost benchmark futures, which are already near their highest levels in about 2-1/2 years. "We estimate a potential reduction of around 5% to 8% in crude palm oil (CPO) production under normal circumstances," Datuk Dr Ahmad Parveez Ghulam Kadir, director general at the Malaysian Palm Oil Board (MPOB) said. "However, if severe flooding persists, the reduction could reach as high as 10% to 20%," he said. Peninsular Malaysia, particularly its northeastern coast, and southern Thailand have been battered by torrential rains which caused floods that killed dozens of people, and damaged homes, transport links, and thousands of acres of rice crops. Malaysian ...

Source: Theedgemarkets