Malaysia’s palm oil production declines due to December rainfall

As harvesting in the world’s second-largest producer of the tropical oil is hampered by excessive rainfall, Malaysia’s palm oil production is expected to decline for the fourth consecutive month in December. According to the sources. Malaysian inventories would be reduced by lower output, which would also raise benchmark futures, which are already close to their highest levels in roughly two and a half years. Ahmad Parveez Ghulam Kadir, director-general at the Malaysian Palm Oil Board (MPOB), said, “We estimate a potential reduction of around 5 percent to 8 percent in crude palm oil (CPO) production under normal circumstances.” Torrential rains have pounded southern Thailand and Peninsular Malaysia, especially its northeastern coast, causing flooding that has killed dozens of people and damaged hundreds of acres of rice fields, residences, and transportation infrastructure. Some east coast regions received more than six months’ worth of rainfall between November 26 and 30, ...