The stocks of Palm oil Malaysia's crude oil prices fell for a third straight month in December, hitting their lowest level since May 2023, as floods hit output, data from the industry regulator showed on Friday.
In addition, falling stocks in the world's second-largest palm oil producer, Malaysia, could weigh on benchmark futures. It is worth noting that these contracts have undergone a sharp correction in recent weeks, especially after reaching their highest value in about two and a half years in November.
More specifically, palm oil stocks in Malaysia fell by 6.91% at the end of December, compared to the previous month. Consequently, they reached their lowest level in 19 months, totaling 1.71 million tonnes. The data was released by the Malaysian Palm Oil Board (MPOB).
Palm oil stocks fall as local consumption rises
Crude palm oil production also fell. There was a reduction of 8.3%, totaling 1.49 million tons, the lowest volume since March 2024. In addition, exports of the product fell by 9.97%, reaching 1.34 million tons, the lowest level in six months.
A Reuters poll had forecast stocks of 1.76 million tonnes, production of 1.48 million tonnes and exports of 1.38 million tonnes.
The MPOB data for December paints a slightly bullish picture for the market. This is because inventories have fallen more than expected. The increase in local consumption has driven the decline. Anilkumar Bagani, head of research at Mumbai-based vegetable oil brokerage Sunvin Group, made the analysis.
Malaysia's palm oil consumption rose 53% in December from the previous month to 309,865 tonnes, the data showed.
Source: Ashley Tang and Rajendra Jadhav | Notícias Agrícolas
