Palm Oil Production Declines in Malaysia Due to Heavy Rainfall

31-Dec-2024 03:20 PM

Palm Oil Production Declines in Malaysia Due to Heavy Rainfall
Malaysia's palm oil production is expected to decline for the fourth consecutive month in December.
Heavy rainfall has disrupted production.
The Malaysian Palm Oil Board predicts a 5%-8% drop under normal conditions, but prolonged flooding could cause a 10%-20% reduction.
Crude palm oil (CPO) production in November 2024 fell 9.8% from the previous month to 1.62 million tons, the lowest since 2020.
This decline may lead to higher palm oil prices.
Currently, palm oil is more expensive than soybean and sunflower oils.
Increased domestic use in Indonesia may further strain international supply.