Floods and Old Trees in Malaysia Set to Tighten Palm Oil Market
- Malaysia, Indonesia may seen marginal output gain, MPOA says
- Floods will affect harvest, logistics and lead to poorer fruit
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The global palm oil market is expected to tighten this year as floods and older trees constrain production in the world’s second-biggest supplier, according to a major Malaysian growers group.
Indonesia and Malaysia may only see a marginal increase in output this year of less than 3%, respectively, Joseph Tek, the chief executive of the Malaysian Palm Oil Association, said in a statement. Heavy rainfall and floods in parts of Malaysia will constrict production in the short term because of disruptions to harvesting and logistics, and result in poorer quality fruit, he added.