Malaysian stockpiles tumbled about 8.5% from October to 2.15 million tonnes, the lowest since September 2017, according to the median of 14 estimates in a Bloomberg survey of analysts, traders and plantation executives.
KUALA LUMPUR: Palm oil inventories in Malaysia, the world’s second-largest producer, probably shrank to the smallest in more than two years in November as production tumbled to a five-month low.
That will likely give another fillip to the bullish momentum in benchmark futures, which have soared on concerns supply is dwindling just as Indonesia is about to boost mandatory use of palm oil in biodiesel.
Malaysian stockpiles tumbled about 8.5% from October to 2.15 million tonnes, the lowest since September 2017, according to the median of 14 estimates in a Bloomberg survey of analysts, traders and plantation executives. That’s the biggest monthly drop since May and pegs reserves at a level almost 30% below the same month last year.
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