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KUALA LUMPUR (Dec 10): Malaysia’s palm oil ending stocks in November fell to a more than three-year low as production plunged and exports fell more than expected, data from the oil regulator showed. the industry on Thursday.
End-November inventories in the world’s second-largest palm oil producer fell 0.58% from the previous month to 1.56 million tonnes, the lowest level since June 2017, the Oil Board said. of Palma de Malaysia (MPOB).
Crude palm oil production fell 13.51% from October to 1.49 million tonnes, its lowest level since March.
The report is bearish as stocks are largely unchanged due to an increase in imports that hit an 11-month high, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
Palm oil imports in November increased 148.2% to 112,663 tonnes, the MPOB said.
Imports were expected to increase due to the strong outflow of crude palm oil due to tax exemptions and decreased production, Varqa said.
However, the decline in exports was more than expected, as they fell 22.16% to a seven-month low of 1.3 million tonnes, after increasing in the last two months.
The volumes of palm oil absorbed by China and the European Union (EU) were not enough to offset a 50% drop in shipments to the largest buyer, India, MPOB data showed.
“Unless palm oil exports improve in December, prices are likely to remain under pressure,” said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.
Exports from December 1 to 10 fell 6%, according to cargo inspectors.
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