Palm oil supplies are expected to remain tight for the next few months following floods that hit Malaysia and Indonesia, the two largest producers of the commodity.
According to Kuala Lumpur Kepong Bhd (KLK), the bad weather has disrupted production, leading to lower yields.
Lee Oi Hian, Executive Chairman of KLK, explained that plantations in both countries, particularly in Sabah, Malaysia, have been affected.
The heavy rains have not only reduced harvesting activities but also caused long-term issues, such as poor pollination.
This could further affect supplies even after the floods recede.
However, production is expected to recover in the second half of this year.
Despite the challenges, the industry remains positive to achieve better yields in the coming months.
