End-November palm oil stocks down slightly as output falls

KUALA LUMPUR: Malaysia’s palm oil inventories at end-November likely shrank slightly from October as output slowed while imports jumped, according to a Reuters survey.

Stockpiles in the world’s second-largest producer were seen falling 0.47% from the previous month to 2.39 million tonnes, according to the median estimate of six traders and analysts polled by Reuters.

Production is pegged to decline 5% from October to 1.72 million tonnes.

“The La Nina weather phenomenon is underway in the Pacific Ocean in October and strengthened in November, impacting key oil palm planted areas in Borneo and potentially the east coast of Malaysia,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

Exports are expected to climb 3% to 1.55 million tonnes, while imports likely rose 16.8%.

Strong demand for palm oil has been underpinned by a widening price discount against rival oils including soyoil.

The ringgit looks set to rise with a new government in place in Malaysia, Varqa said, adding that would make exports expensive, but that it might be offset by higher Indonesian palm prices inflated by levy and taxes. The ringgit, palm’s currency of trade, has strengthened in the past week after the appointment of new Prime Minister Datuk Seri Anwar Ibrahim, making the edible oil more expensive for buyers holding other currency.

It is learnt that the Malaysian Palm Oil Board is scheduled to release its data on Dec 13. — Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Trading ideas: Reservoir Link Energy, MQ Technology, Berjaya Corp and SYF Resources
Global economic view for this year downgraded
Chevron to buy back US$75bil in stock
China’s box office bounces back on Spring Festival holiday
Britain’s 2022 car production hits over six-decade low
Tesla profits up, seeks rapid output boost
World’s biggest luxury spenders are S. Koreans
British banking damaged by slow supervisors
Economic contraction supports rate hike pause
High hopes as China tourists return

Others Also Read