KUALA LUMPUR (Jan 12): Malaysia's crude palm oil (CPO) production in December 2014 contracted 22.04% to 1.36 million tonnes from a month earlier, more than earlier forecasted, as floods in oil palm producing states curbed harvest.
The Malaysian Palm Oil Board (MPOB) had earlier said CPO production in December was expected to fall between 15% to 25% to 1.4 million tonnes compared to 1.75 million tonnes in November.
A statement on the board's website today also showed total palm oil inventory, comprising CPO and processed palm oil, had hit a five-month low of 2.01 million tonnes, which is a contraction of 11.55%.
Palm oil exports edged up 0.43% to 1.52 million tonnes.
The latest MPOB data showed December palm oil stockpile had decreased at a higher rate compared to the median forecast of a Reuters survey.
The survey involving, six planters, traders and analysts forecasted that palm stocks would fall 11.4% to 2.02 million tonnes, a five-month low, in December as monsoon floods disrupted harvesting and transportation in the East Coast of Peninsular Malaysia.
The survey had expected December CPO output to decline to 1.36 million tonnes.
MPOB had said CPO production in December was expected to fall between 15% to 25% to 1.4 million tonnes compared to 1.75 million tonnes in November.
This followed devastating floods that had inundated several areas in the East Coast of Peninsular Malaysia and left thousands displaced.
Plantation Industries and Commodity Minister Datuk Amar Douglas Uggah Embas was also quoted by news reports as saying a total of 190,600 ha of oil palm plantations across the nation belonging to both smallholders and major players were affected by the floods.
He had said out of the 190,600ha, the bulk or 165,000ha in Pahang, Terengganu, Johor, Kelantan and Perak belonged to major oil palm companies.