M'sia palm oil output seen falling as floods hit harvesting

Kuala Lumpur

PALM oil output in Malaysia will decline in December and January as severe flooding disrupts harvesting in the largest exporter after Indonesia, exacerbating a seasonal drop in production, according to RHB Investment Bank Bhd.

Output for December may contract by as much as 20 per cent from 1.75 million tonnes in November, according to Alvin Tai, an analyst at the bank who's covered the plantation industry for 11 years. There'll be a significant reduction in harvesting, he said.

The commodity that's used in foods and biofuels had the first-quarterly increase last year as Malaysia suffered from its worst flooding in decades caused by heavy monsoon rains. Commodity Weather Group LLC predicted that the wet-weather pattern may threaten damage to the tropical crop nex…