Malaysian palm oil output to top 20 million tons for first time

Malaysia’s palm oil production is on track to exceed 20 million metric tons this year for the first time, supported by more efficient harvesting, improved labour availability and output from maturing plantations, the industry regulator told Reuters. Record production in the world’s second-largest palm oil exporting country is likely to lift inventories, which could weigh on benchmark Malaysian futures FCPO1!, already trading near a five-month low. Malaysia is expected to produce between 20 million and 20.5 million tons this year, assuming favourable weather and continued harvesting efficiency, Ahmad Parveez Ghulam Kadir, director general at the Malaysian Palm Oil Board, said on Wednesday. “Crossing the 20 million ton threshold would therefore represent not merely a statistical achievement, but a historic milestone reflecting both supportive market conditions and structural improvements in plantation productivity,” he said. Malaysia’s palm oil stocks in November rose to a more than ...