Malaysia’s Palm Oil Output Stays Strong Despite Flood Challenges

Malaysia’s palm oil industry has remained stable despite recent flooding, according to the Malaysian Palm Oil Board (MPOB). While localized disruptions from waterlogging and harvesting delays occurred, overall production remains manageable, MPOB director general Ahmad Parveez Ghulam Kadir told Reuters.

The Northeast Monsoon, which began on November 5, is expected to last until March, bringing heavy rainfall that may trigger floods in low-lying areas. Severe floods last November displaced over 90,000 people, with another wave in January affecting thousands in Johor, Sarawak, and Sabah—regions that account for 55% of Malaysia’s 5.61 million hectares of palm oil plantations and 43.6% of crude palm oil output.

Ahmad Parveez emphasized that MPOB is actively working with growers to minimize disruptions. “Malaysia’s palm oil sector is well-prepared to safeguard its output and ensure a steady global supply,” he said.

On demand trends, Ahmad Parveez noted that while India’s refiners have favored soybean oil due to better margins, palm oil demand is expected to rise ahead of Ramadan. In China, future imports will depend on price competitiveness and market conditions. European demand remains stable, though the delay in the EU Deforestation Regulation (EUDR) has reduced the urgency to stockpile.

“Palm oil’s competitiveness against soybean and sunflower oil will be the key factor influencing short-term demand in these markets,” he added.

Despite temporary setbacks, Malaysia’s palm oil industry continues to demonstrate resilience, ensuring global supply stability amid challenging weather conditions.