# Malaysian palm oil production to drop slightly in 2020, pushing the price upward, says expert | Malay Mail

> Thomas Mielke of ISTA Mielke said Malaysian palm oil production will drop slightly in 2020 from 20.5 million tonnes in 2019. He expected Indonesian output to slow growth to 45.4 million tonnes, and said global palm oil supply will fall short of demand. China is also increasing vegetable oil imports due to lower domestic soybean crushing.

- Date: 2019-11-01 · published 2019-11-01T12:00:00.000Z
- Category: report · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/4290-malaysian-palm-oil-production-to-drop-slightly-in-2020-pushing-the-price-upward
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A forecast global palm oil deficit and rising Chinese import demand support higher vegetable oil prices. Tighter oil supply raises costs for oil-based feed ingredients.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2019-11-06 | 5 | +14.0% | 5.9 | ISTA Mielke's forecast of lower 2020 Malaysian output and a global supply shortfall supports higher prices via expected supply tightness. |
| PALMOIL | 2019-11-04 | 5 | +13.0% | 6.4 | Forecasts of lower 2020 Malaysian output and a global supply shortfall, plus rising Chinese vegetable oil imports, support higher prices. |
| PALMOIL | 2019-11-01 | 1 | +9.2% | 13.1 | ISTA Mielke's forecast of lower 2020 Malaysian output and a global supply shortfall versus demand supports the tightening-supply narrative on the move date. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2017-02-03 | [Malaysian palm oil rise 1.4% on production, strong exports – Customs Today Newspaper](https://feedsoft.ai/events/12322-malaysian-palm-oil-rise-1-4-on-production-strong-exports-customs-today-newspaper.md) | +0.7% | -7.2% |
| PALMOIL | 2022-01-12 | [Palm oil imports to dip in 2021-22 on lower Malaysia exports, converging vegoil prices: US FAS](https://feedsoft.ai/events/43229-palm-oil-imports-to-dip-in-2021-22-on-lower-malaysia-exports-converging-vegoil.md) | +2.6% | +11.7% |
| PALMOIL | 2021-11-13 | [Palm Oil News - CPO Gets More Expensive: Malaysian Production Decreased](https://feedsoft.ai/events/15867-palm-oil-news-cpo-gets-more-expensive-malaysian-production-decreased.md) | +2.4% | -4.6% |
| PALMOIL | 2022-12-07 | [Indonesia's palm oil exports to hit record high, despite production shortfall - Grain Price News](https://feedsoft.ai/events/15771-indonesia-s-palm-oil-exports-to-hit-record-high-despite-production-shortfall.md) | -4.9% | -0.3% |
| PALMOIL | 2026-04-24 | [Malaysia’s March Palm Oil Stocks Drop 16.1% As Export Surge Tightens Supply](https://feedsoft.ai/events/19817-malaysia-s-march-palm-oil-stocks-drop-16-1-as-export-surge-tightens-supply.md) | -0.0% | -1.4% |
| SBO | 2022-01-12 | [Palm oil imports to dip in 2021-22 on lower Malaysia exports, converging vegoil prices: US FAS](https://feedsoft.ai/events/43229-palm-oil-imports-to-dip-in-2021-22-on-lower-malaysia-exports-converging-vegoil.md) | -0.8% | +4.6% |
| SBO | 2022-12-07 | [Indonesia's palm oil exports to hit record high, despite production shortfall - Grain Price News](https://feedsoft.ai/events/15771-indonesia-s-palm-oil-exports-to-hit-record-high-despite-production-shortfall.md) | -1.4% | -5.2% |
| SBO | 2022-07-13 | [Global sunflower production expected to drop](https://feedsoft.ai/events/40600-global-sunflower-production-expected-to-drop.md) | +0.0% | +4.2% |

## Sources

- malaymail.com: https://www.malaymail.com/news/money/2019/11/01/malaysian-palm-oil-production-to-drop-slightly-in-2020-pushing-the-price-up/1805932

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.