24/11/2010 (Commodity Online), Kuala Lumpur - Heavier monsoon rains caused by La Nina phenomenon this year continued to hit Malaysia’s key oil palm region of Sabah, according to country’s weather office.

Malaysian Meteorological Department director-general Yap Kok Seng, the weather condition will induce five to six episodes of heavy rain in the world’s second largest palm oil producer and No. 3 rubber supplier.

“Rainfall, especially over the northern and east coast states of Peninsular Malaysia and Sabah, is expected to be slightly above the long-term average,” he added.

Accounting for at least a quarter of total national palm oil production, estates in Sabah went through a dry spell caused by El Nino earlier this year that sapped yield quality.

Now, prolonged exposure to moisture from La Nina may turn palm fruits rotten. Stronger floods and rains can make harvesting and logistics difficult, possibly creating a supply squeeze.

The last time La Nina hit Malaysia in 2007-2008, oil palm-growing states of Pahang and Johor on the mainland experienced floods that created a scramble for palm oil supplies, pushing prices to a record of RM4,486 in March 2008.

Benchmark February 2011 palm oil on the Bursa Malaysia Derivatives Exchange closed up 1.6 per cent at RM3,318 per tonne yesterday. That is 26 per cent off the record high.

This time, Pahang and Johor are expected to have rainfall about the long-term average during December and January, Yap said.

“The northeast monsoon is expected to end in March 2011. However, the rainfall throughout the country is expected to gradually decrease towards the end phase of the northeast monsoon,” he said.

La Nina is also expected to end in the first quarter of next year, Yap said.