Latest news with #AhmadParveez
Yahoo
24-02-2025
- Business
- Yahoo
Malaysia's Flooded Palm Problems to Persist for Another Month
(Bloomberg) -- Malaysian oil palm plantations that have been inundated with rain this year aren't likely to see production recover for at least another month, according to a senior industry official. Trump Targets $128 Billion California High-Speed Rail Project Trump Asserts Power Over NYC, Proclaims 'Long Live the King' Trump to Halt NY Congestion Pricing by Terminating Approval Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups The situation has already tightened supplies in the global market, which is headed for a back-to-back drawdown in stockpiles, lifting futures nearly 9% so far this month. The flooding has submerged farms and forecasters are expecting more rain, further squeezing supplies of the world's most-consumed edible oil just as buyers restock for a major Muslim festival. 'The recent floods in Malaysia will impact palm oil production in 2025, particularly in the first quarter,' said Ahmad Parveez Ghulam Kadir, director general of the Malaysian Palm Oil Board. Waterlogged farms and harvesting disruptions will likely result in lower fresh fruit bunch output and reduced oil extraction rates in the short term, he said. January production in the Southeast Asian nation slumped the most in nine years as heavy rainfall and flash floods in major palm areas crippled operations. Sarawak and Sabah, the top growing states, were among the worst hit, according to the country's weather agency. That spurred a more than 7% drop in stockpiles from a month earlier, missing all estimates in a Bloomberg survey. The situation will help keep prices elevated. Palm oil prices may trade in a range of 4,500 ringgit and 4,800 ringgit ($1,018 and $1,086) a ton through the first half of this year, Ahmad Parveez said ahead of a major industry conference this week in Kuala Lumpur. The tropical oil closed at 4,664 ringgit a ton on Friday. The board predicted last month that Malaysian palm oil production will total 19.5 million tons this year, a 0.8% rise from 2024, but prolonged floods or more severe rains could jeopardize that estimate, he said. The peninsular states of Johor, Pahang and Perak were facing the biggest impact due to earlier adverse weather, he added. Parts of Sarawak will continue to get rainfall of at least 100 millimeters (3.9 inches) above average in the two weeks to March 8, according to the US Climate Prediction Center. Sabah is also forecast to get slightly above-normal precipitation over that period. The weather woes have raised concerns about palm oil's availability ahead of the Ramadan and Eid al-Fitr holidays, which typically drive up consumption. However, festival season demand will ebb after March and production is expected to gradually recover in the second half of the year, Ahmad Parveez said. Imports from top buyer India may also decline as soybean oil takes market share from palm, as the two trade near parity. --With assistance from Eko Listiyorini and Mary Hui. Meet Seven of America's Top Personal Finance Influencers How Med Spas Conquered America India's Most Reliable Retirement Plan: Selling Grandma's Jewelry Crypto, Inflation, Bonds: Your Investment Guide to a Risky Year The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory ©2025 Bloomberg L.P. Sign in to access your portfolio
Reuters
10-02-2025
- Business
- Reuters
Malaysia palm oil output resilient despite flood disruption, says MPOB
KUALA LUMPUR, Feb 10 (Reuters) - Malaysia's palm oil production remained resilient despite potential disruption from floods that have hit several states in recent months, the Malaysian Palm Oil Board (MPOB) said on Monday. "While localised disruptions may occur due to temporary waterlogging and harvesting delays, the overall impact on the country's production is expected to be manageable,' MPOB director general Ahmad Parveez Ghulam Kadir told Reuters. The Malaysian Meteorological Department said last month that the Northeast Monsoon, which began on November 5 last year, was expected to continue until March. Continuous heavy rainfall over a period of a few days could cause floods in low lying and flood prone areas, it warned. Malaysia experienced its most severe flooding in decades in November last year, displacing more than 90,000 people. Another wave of floods in January forced thousands from their homes in the southern state of Johor, as well as in Sarawak and Sabah on the island of Borneo. Sarawak and Sabah account for some 55% of Malaysia's 5.61 million hectares of palm oil plantations, and were responsible for 43.6 percent of crude palm oil production last year. Ahmad Parveez said the MPOB would work closely with growers to help the industry recover. 'While some short-term effects are possible, Malaysia's palm oil sector is well-prepared to safeguard its output and ensure steady global supply,' he said. When asked about future palm oil demand from key, Ahmad Parveez said demand from India, China, and Europe was stable. In India, he said refiners have shifted towards soybean oil due to better refining margins, but demand is expected to pick up ahead of the Muslim fasting month of Ramadan. I In China, future imports will depend on price competitiveness and overall market conditions, he added. 'In Europe, demand remains relatively stable, though the delay in the EU Deforestation Regulation (EUDR) means there is no longer an urgency to stockpile. Imports may fluctuate based on price movements and how the industry adapts to regulatory changes. "Palm oil's competitiveness against soybean and sunflower oil will be the key factors influencing short-term demand trends in these markets,' he said.
