Glacier FarmMedia | MarketsFarm — Palm oil production in Malaysia is projected to ease back in 2024/25 as compared to the previous year, said the United States Department of Agriculture (USDA) attaché in Kuala Lumpur.
In the Global Agricultural Information Network (GAIN) report released on Oct. 4, the attaché estimated Malaysia’s palm oil output at 19.20 million tonnes compared to 19.60 million the previous year, with the area harvested remaining at 5.13 million hectares.
The attaché cited, “the lasting effects of El Nino weather patterns,” as there’s often a six-to-seven-month delay between the weather occurrence and the weather it generates. In this case it would be a lack of rain, particularly in the Malaysian state of Sabah when palm trees were pollinating.
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Also, the report pointed to labour issues with plantations unable to hire sufficient numbers of workers.
The USDA’s official estimate of Malaysian palm oil pegged production for 2024/25 at 19.80 million tonnes, up one million from the year before, with area harvested bumping up 50,000 hectares at 5.60 million.
The Kuala Lumpur desk forecast Malaysia’s palm oil exports for 2024/25 at 15.70 million tonnes, down 500,000 from the previous marketing year. However, ending stocks are to rise from 2.25 million tonnes in 2023/24 to just short of 2.40 million this year.
The attaché pointed to India’s recent 22-point hike in its import duty on foreign palm oil to 27.5 per cent, along with a “lack of price competitiveness compared to other edible oils.”
Meanwhile, the department placed 2024/25 exports at 16.50 million tonnes, up 200,000 from the previous year. The carryover was calculated at 2.18 million tonnes, down from 2.22 million.
The USDA is scheduled to release its next supply and demand report on Oct. 11, It’s unknown if the department will incorporate the attaché’s estimates in the report.
