# East Malaysia-based planters benefit from CPO rally, lower production

> Malaysia's CPO production fell 16.6% year-on-year to 1.54 million tonnes in November, with Sarawak's output down 17.8% month-on-month. BIMB Securities expects lower output and stockpiles, along with a rally in soyoil prices, to keep palm oil prices elevated.

- Date: 2019-12-31 · published 2019-12-31T12:00:00.000Z
- Category: report · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/5457-east-malaysia-based-planters-benefit-from-cpo-rally-lower-production
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower Malaysian palm oil output tightens global vegetable oil supply, supporting palm and soy oil prices and raising the cost of fats used in feed.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-01-02 | 5 | +10.9% | 3.8 | A 16.6% year-on-year drop in Malaysian November output and lower stockpiles tightened supply, supporting higher prices into year-end. |
| PALMOIL | 2020-01-02 | 1 | +9.7% | 6.4 | A 16.6% year-on-year drop in Malaysian output, lower stockpiles and a soyoil rally tighten palm supply and support prices heading into the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2025-02-27 | [Sunflower production estimate lowered](https://feedsoft.ai/events/26196-sunflower-production-estimate-lowered.md) | -4.0% | -2.8% |
| PALMOIL | 2022-12-20 | [USDA lowers 2022/23 global oilseed production forecast by 1M tonnes](https://feedsoft.ai/events/38366-usda-lowers-2022-23-global-oilseed-production-forecast-by-1m-tonnes.md) | +0.6% | +1.7% |
| 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 | 2023-07-27 | [UOB Kay Hian raises CPO forecast to RM4,200 per tonne in 2024 on tight supplies from Malaysia, Indonesia](https://feedsoft.ai/events/35139-uob-kay-hian-raises-cpo-forecast-to-rm4-200-per-tonne-in-2024-on-tight-supplies.md) | +0.3% | -3.9% |
| SBO | 2025-02-27 | [Sunflower production estimate lowered](https://feedsoft.ai/events/26196-sunflower-production-estimate-lowered.md) | -5.2% | -4.3% |
| SBO | 2023-03-20 | [USDA lowers global oilseed production forecast due to plunging…](https://feedsoft.ai/events/36974-usda-lowers-global-oilseed-production-forecast-due-to-plunging.md) | -1.6% | -4.1% |
| SBO | 2021-02-10 | [USDA experts have increased the forecast of world production of sunflower oil](https://feedsoft.ai/events/48754-usda-experts-have-increased-the-forecast-of-world-production-of-sunflower-oil.md) | +1.4% | +17.4% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2019/12/31/east-malaysia-based-planters-benefit-from-cpo-rally-lower-production/

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