Plantation company Ganling Sdn Bhd says the current flood situation is expected to only have minimal impact on palm oil production, but production figures would have to be revised if rainfall continues. – The Malaysian Insight file pic, March 6, 2023.
Ah Ling, the director of plantation company Ganling Sdn Bhd, said the current flooding is expected to have only minimal impact on production, but production figures would have to be revised if rainfall continues. “Normally the impact of La Nina on palm production compared to El Nino is very different. La Nina is very physical but not all areas are flooded.He said that while La Nina could disrupt supplies in the first quarter, production will trend higher in the first half of the year and into the first quarter of 2024.
He said the current inventory of 2.1 million tonnes remains supportive of the current CPO price level. “CPO prices are expected to weaken in the second half of the year due to higher production and subdued demand,” he said.