Malaysia Drought Expected Negative for Palm Oil Output to 2016

23 Apr 2014 by Local Press Report

Malaysia’s severe drought in the first three months of 2014 will have a negative impact on palm oil production into early 2016 even after rain returned in the second half of March, industry researcher Oil World predicted. After “very good” rains in the first two weeks of April, reservoir levels are still critically low, causing persisting moisture shortages in many oil-palm growing areas, the Hamburg-based researcher wrote in an e-mailed report Malaysia’s Pahang state, which accounts for about 15 percent of the country’s palm oil output, had 25 percent of normal rain in March and 54 percent in the first quarter, according to Oil World...

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