Floods in Major Growing State Dent Malaysia Palm Oil Output

Palm oil output in Sabah is set for a sharp decline this month as heavy rainfall and floods hammer plantations in one of Malaysia’s key producing states, potentially easing a glut that’s weighed on prices for the crop.

Production in February could fall by 15% to 17% from a month earlier, said Prakash Arumugam, chairman of the Malaysian Palm Oil Association’s Sabah branch. Prolonged rain over the past four weeks has triggered frequent flooding across estates, especially in low-lying areas.