Traders expect Malaysia's palm oil production to fall by 25% in November

According to traders, recent torrential rains in oil palm growing areas in Malaysia have affected oil palm harvest and production, which may lead to a decline in yield per unit area, which could be reduced by 25% in November.

Palm oil production in November is likely to be 25% lower than the previous month. It's only 1.48 million tons.

Johor, the main palm producing area in southern Malaysia. The planter said palm oil production was abnormally high in October, but recent rains will increase the moisture of palm fruits, so palm oil production will be greatly reduced. In addition, floods may also occur in these areas.

The Joho region accounts for about 20 per cent of Malaysia's total palm oil production of 17 million tonnes.

Sabah, which usually accounts for more than 1/4 of the country's total output, has also seen torrential rains recently. The per unit yield of oil palms of some plantation owners has been reduced by 30 to 40%, and the roads of the plantations are flooded. Because the moisture content is as high as 0.4%, much higher than the standard 0.25%, the price of crude palm oil is 200 to 300 ringgit lower than the retail price of 2160 ringgit.