CGS-CIMB: Palm oil stocks set to continue dropping this month

Malaysian palm oil futures rose nearly 2 percent on Tuesday, hitting their highest in nearly three weeks, as production rose more slowly than expected.

PETALING JAYA: Palm oil stocks are expected to continue to decline in February after falling 6.7% month-on-month (m-o-m) in January on the back of a recovery in exports and higher consumption.

CGS-CIMB Research said it projected Malaysia’s palm oil inventory will fall 5% m-o-m to 2.85mil tonnes at end-February as exports and consumption exceed production.