09/05/2008 (Commodity Online), Kuala Lumpur - Palm oil production in Malaysia’s largest palm oil producing province, Sabah is likely to be hit by heavy rains and strong winds expected from Saturday to Tuesday.

The Malaysian Meteoroligal Department has issued the following warning today: Strong wind and heavy rain is expected to occur over Sabah (divisions of West Coast, Kudat and Interior) and FT Labuan from Saturday, 10th May to Tuesday, 13th May.

Thunderstorms and heavy rain with strong winds occuring over Perlis and Kedah (Kubang Pasu, Kota Setar, Padang Terap, Yan, Pendang and Pulau Langkawi Districts) is expected to persist until late afternoon, Friday 9 May 2008.

The same weather condition is expected to occur over Kedah (Kuala Muda, Baling, Sik and Kulim Districts) and Penang.

Sabah is Malaysia's largest palm oil producing province in volume terms, market analysts said.

Earlier, adverse weather hit Sabah's oil palm harvest in March, slowing growth in March palm oil output (up 1.92% on month to 390,642), a leading oil seeds analyst said.

The unfavourable weather conditions also slowed Malaysia's total March output growth on month to month basis, although on-yearly basis production was higher considerably higher. April output growth also likely to be lower, analysts added.

Sabah's weak road infrastructure coupled with heavy rains can reduce access to plantations.

Crude palm oil futures prices in Malaysia, world’s largest palm oil producing and exporting country,fell nearly 1 per cent on Thursday as rising supplies and a slowdown in buying weighed on the market, dealers said.

“Refiners are not taking oil because the storage facilities are full. It’s a problem for plantations,” said one dealer with a domestic brokerage. “At the same time, imports are not picking up as everyone expected. India and China are buying in small quantities.”

They said there were also no signs of fresh leads in the quiet market. "The market opened lower and continued to be in the lower range although internal and external factors are strong," a dealer said.