The United States Department of Agriculture (USDA) estimates Malaysia's 2019/20 palm oil production at 20.5 million metric tons (mmt), down 2 percent from last month and down 1 percent from last year.
Harvested area is estimated at 5.35 million hectares, unchanged from last month, but up 1 percent from last year. Yield is estimated at 3.83 million tons per hectare, down 3 percent from last month and down 2 percent from last year.
After above-average rainfall in 2017 and 2018, seasonal rains during 2019 under performed, negatively impacting current palm oil production. Latest reports from the Malaysia Palm Oil Board (MPOB) indicate cumulative crude palm oil (CPO) production for October and November at 3.33 mmt, down 13 percent from last year and the lowest cumulative total for October and November since 2008.
On average, October and November represent the highest CPO output in the market year followed by August and September. USDA’s market year for Malaysia palm oil is October through September.