Malaysia Palm Oil Output Set for Steep Drop After Sabah Floods

Malaysia’s palm oil production is set for the steepest monthly decline in more than a year after floods across its major growing state, trimming inventories and likely underpinning higher prices.

Output tumbled 16% in February to 1.33 million tons, according to the median of 12 estimates in a Bloomberg poll of plantation executives, traders and analysts. That would be the biggest drop since January 2025, and extend production declines for a fourth straight month.