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Malaysia\'s Johor delays 30,000 T of palm oil as floods rise-trade
calendar01-02-2011 | linkReuters | Share This Post:

31/01/2011 (Reuters) - Planters in Malaysia have delayed 30,000 to 40,000 tonnes of the vegetable oil over the past two days as floods cut off access roads in a key producing region, traders said on Monday.

Heavy rains at the weekend triggered floods in Malaysia's No. 2 producing region, southern Johor state, complicating logistics and exposing palm fruits to excess moisture.

"About 40,000 tonnes was heading to refineries but the rains have slowed the trucks. Some are stranded, surrounded by water," said a trader with knowledge of the deliveries.

Another trader in Johor confirmed the delay, adding that the delay could last for a week.

"If rains continue into February till the end of that month, we could see delays of at least another 120,000 tonnes."