KUALA LUMPUR- Malaysia’s palm oil inventories are forecast to fall in November for a second consecutive month as torrential rains disrupt production, a Reuters survey showed on Thursday.
Palm oil stocks are expected to fall to 1.79 million metric tons, down 5.1 percent from October, according to a median estimate of ten traders, planters, and analysts polled by Reuters.
Crude palm oil output is expected at 1.69 million metric tons, a 6.13 percent decline from the previous month and the third straight monthly fall.
“The persistent rains will likely continue to affect production and compromise the quality of crude palm oil, especially in December and the first quarter of 2025,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Exports of palm oil products are projected to fall by 12 percent to 1.52 million metric tons, snapping two consecutive months of gains, the survey showed.
The fall in seasonal demand after the Deepavali festive holidays and the slowdown in demand from China contributed to the lower figures, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on Dec. 10.
