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.
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.
