KUALA LUMPUR/MUMBAI- Malaysia’s palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports, the industry regulator said on Monday.
The reduction in stocks in Malaysia, the world’s second-largest palm oil producer after Indonesia, would help in supporting benchmark futures which lost 10 percent in 2023.
Malaysia’s palm oil stocks at the end of February fell 5 percent from the previous month to 1.92 million metric tons, their lowest since July 2023, data from industry regulator the Malaysian Palm Oil Board (MPOB) showed.
Crude palm oil production declined 10.18 percent from January to 1.26 million tons, the lowest since April 2023, while palm oil exports plunged 24.75 percent to 1.02 million tons, MPOB said.
A Reuters survey forecast February inventories at 1.91 million tons, a 5.7 percent decline from the previous month, with output at 1.32 million tons and exports at 1.14 million tons.
The MPOB report came within expectations, said Anilkumar Bagani, research head of vegetable oils broker Sunvin Group. – Reuters