Malaysia palm oil output set for steep drop after Sabah floods
In Malaysia, The Star reported that Malaysia’s palm oil production is set for the steepest monthly decline in more than a year after floods across its major growing state, trimming inventories and likely underpinning higher prices.
The report noted that output tumbled 16% in February to 1.33 million tons, according to the median of 12 estimates in a Bloomberg poll of plantation executives, traders and analysts. That would be the biggest drop since January 2025, and extend production declines for a fourth straight month.
Heavy rain and flooding hammered plantations in Malaysia’s Sabah last month, a region that accounts for about a fifth of the country’s output. Even before the wild weather, the nation’s production was expected to decline in February due to seasonal lows and shorter working days due to holidays, according to the report.
Inventories slid 6% from January to 2.65 million tons, according to the survey, a second monthly drop that puts them at the lowest in four months. However, the decline was capped by weaker Malaysian exports – forecast in the poll to have dived 20% on-month to 1.19 million tons.
Category: Food & Agriculture
