The severe drought experienced in Malaysia in the first three months of 2014 will have a negative impact on palm oil production through 2016. Even after “very good” rain fell in the first two weeks of April, palm oil producing regions are still experiencing moisture shortages and reservoirs are critically low. Malaysia’s Pahang state usually receive 70% of its rainfall in January through March, however the state received only 54% of normal rainfall in the first quarter of 2014 and 25% of normal rainfall in March. The lack of rain will have a negative impact on production in October through December because of the dropping of young fruit bunches due to drought stress according to Oil World, and negative impacts will continue through 2015 into 2016 because of a higher share of male flowers also caused by drought and dryness.
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