Malaysia palm oil output sinks most in nine years as rain hits crops
12/02/2025 (Bloomberg), Kuala Lumpur - Palm oil output in Malaysia fell the most since 2016 as heavy rain and floods disrupted harvesting in the world’s second-biggest grower.
Sarawak and Sabah, top oil palm growing areas, were among the worst affected, according to a statement from the country’s weather agency.
Shrinking supplies in Malaysia could further support the commodity that gained more than 5% last week. Prices jumped further on Monday, taking gains to 3.3% so far in 2025, after being down 3.6% for the year at the end of January.
Palm again commanded a premium over rival soybean oil – an unusual scenario as the commodity is generally the cheapest edible oil because of its round-the-year production, against the seasonal nature of other oilseeds. Oil palm also needs relatively less land to grow.
Palm has been trading higher than soyoil since September, except for about a month since Jan 10. — Bloomberg