Harvesting delays, waterlogging in flood-affected regions to weigh on November CPO output — MPOB
08/12/2025 (The Edge Malaysia) - Malaysia’s crude palm oil (CPO) production is expected to record a modest month-on-month decline in November due to harvesting delays and waterlogging in flood-affected regions, according to the Malaysian Palm Oil Board (MPOB).
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the recent flooding is unlikely to trigger major disruptions to national output, given that the impact was localised and occurred late in the month. Despite above-average rainfall and elevated flood risks in several East Coast states, Malaysia’s full-year CPO production target of 19.5 million tonnes remains intact, he said.
“Malaysia typically sees a seasonal moderation in CPO output in November and December as oil palm trees enter their physiological rest phase,” he said in response to queries from The Edge. “While flooding has caused short-term harvesting delays in certain estates, the national supply outlook remains manageable and the production trajectory for 2025 continues to grow.”
MPOB will issue the official November production data on Wednesday.
Ahmad Parveez said CPO stock levels are expected to rise above October 2025 levels, largely due to slower exports during the month.
According to him, inventories are also likely to remain elevated in December as exports moderate seasonally while “CPO production gradually recovers, depending on weather conditions”.
Higher stockpiles typically weigh on benchmark futures as they indicate comfortable supply and softer demand. The three-month CPO futures contract last traded at RM4,094 per tonne on Bursa Malaysia Derivatives.
According to MPOB’s previous data, national palm oil stocks rose 4.44% to 2.46 million tonnes in October — the highest since April 2019. CPO output climbed 11.02% month-on-month to 2.04 million tonnes, the highest level since August 2015, while exports increased 18.58% to 1.69 million tonnes, marking their strongest growth in a year.
Plantation majors report limited flood impact, operations largely stable
SD Guthrie Bhd (KL:SDG), the world’s largest palm oil producer by acreage, said it has received reports of localised flooding across several operating units — particularly in parts of Kedah, Perak, Selangor and Pahang — which caused temporary interruptions to harvesting, fresh fruit bunches (FFB) evacuation and general logistics.
SD Guthrie operates 234 estates and 65 mills across Malaysia, Indonesia, Papua New Guinea (PNG) and the Solomon Islands, according to its annual report. In Malaysia, its operations span Selangor, Negeri Sembilan, Pahang, Johor, Kedah and Perak, supported by key mills located in Carey Island, Sungai Buloh, Chenor and Sungai Mai.
“Mill operations remain largely stable, although we have implemented measures to ensure safety and continuity,” SD Guthrie’s management told The Edge. “There were isolated cases of limited access due to high water levels and precautionary road closures, but no major incidents. The situation is being monitored closely.”
The company added that certain field activities have been rescheduled where conditions were unsafe, which is expected during the year-end monsoon period. “It is still too early to provide a definitive assessment, but initial observations suggest the impact is manageable. Normal activities have already resumed in several areas, while others are progressing toward recovery.”
IOI Corp Bhd (KL:IOICORP) also reported minimal disruption to harvesting at some of its estates due to flash floods, although it did not specify the affected locations.
“It was mostly flash flooding in a few localised areas. Our teams responded promptly, and operations resumed quickly with no significant impact,” the group told The Edge. IOI manages 94 estates and 15 mills, with plantations spread across Peninsular Malaysia, Sabah, and Kalimantan in Indonesia.