Monsoon May Ease Palm Oil Output Impact from Super El Nino

The upcoming monsoon season in December is expected to mitigate the potential impact of a Super El Niño weather phenomenon on Malaysia's palm oil production, according to Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Sron.

'The previous Super El Nino occurred in 2015, and Malaysia's palm oil production fell by 13 per cent or 2.6 million tonnes in the following year,' she said.

Belvinder noted that the impact of El Niño on palm oil output is typically felt after a time lag of nine to 12 months, and that dry weather conditions developed relatively late in 2026 compared with 2015.

CPO prices have risen above RM4,900 per tonne due to market concerns over the potential impact of El Niño, as well as geopolitical tensions and disruptions to shipping in the Red Sea.