By Ashley Tang and Rajendra Jadhav
KUALA LUMPUR/MUMBAI (Reuters) – Malaysia’s palm oil shares fell for a 3rd consecutive month in December to hit their lowest since Could 2023, as output dropped as a result of floods, information from the trade regulator confirmed on Friday.
The drop in inventories on the planet’s second-largest palm oil producer after Indonesia might help benchmark futures, which have corrected sharply in latest weeks after rising to their highest in about 2-1/2 years in November.
Malaysia’s palm oil shares on the finish of December fell 6.91% from a month earlier to a 19-month low of 1.71 million metric tons, the Malaysian Palm Oil Board (MPOB) information confirmed.
Crude palm oil manufacturing was down 8.3% to 1.49 million tons, the bottom since March 2024, whereas palm oil exports fell 9.97% to a six-month low of 1.34 million tons.
A Reuters survey had forecast inventories at 1.76 million tons, output at 1.48 million tons and exports at 1.38 million tons. [PALM/POLL]
The MPOB information for December is barely bullish for the market, as inventories dropped greater than forecast as a result of an increase in native consumption, mentioned Anilkumar Bagani, analysis head of Mumbai-based vegetable oil dealer Sunvin Group.
Malaysia’s palm oil consumption jumped 53% in December from a month earlier to 309,865 tons, the info confirmed.
Palm oil has been buying and selling at a premium to rival soybean and sunflower oils, and it must appropriate to draw demand from price-sensitive patrons, mentioned a Mumbai-based dealer with a world commerce home.
“Even in January, exports are prone to stay subdued,” the dealer mentioned.
Following is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates for December (volumes in tons)[PALM/POLL]:
December December 2024 November December
2024 ballot 2024 2023
Output 1,486,786 1,483,000 1,621,294 1,550,796
Shares 1,708,747 1,755,000 1,835,641* 2,290,793
Exports 1,341,732 1,375,000 1,490,293* 1,362,145
Imports 37,917 22,500 22,081 40,062
*signifies revised figures by the Malaysian Palm Oil Board
