Malaysia’s palm oil stocks hit 19-month low

Malaysia’s palm oil stocks fell for a third straight month in December, hitting their lowest level since May 2023 amid lower production due to floods, data from the industry regulator showed on Friday, Reuters reported.

Malaysia’s stocks at the end of December fell 6.91 percent from the previous month to a 19-month low of 1.71 million tons, according to the Malaysian Palm Oil Board (MPOB).

Crude palm oil (CPO) production fell 8.3% to 1.49 million tons, the lowest since March 2024, while palm oil exports fell 9.97% to a six-month low of 1.34 million tons. Near-term stocks are forecast at 1.76 million tons, production at 1.48 million tons and exports at 1.38 million tons.

According to the data, Malaysia’s palm oil consumption in December rose 53% from the previous month to 309,000 tons. Mumbai-based traders said palm oil is still selling at a higher price than soybean oil and needs to adjust to attract demand from price-sensitive buyers. Analysts said exports are likely to remain subdued in January.

Tags: Malaysia, palm oil, stocks