Malaysian palm oil shares hit 19-month low in December as output drops


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 on account of floods, information from the trade regulator confirmed on Friday.

The drop in inventories on this 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 on account of an increase in native consumption, stated 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 information confirmed.

Palm oil has been buying and selling at a premium to rival soybean and sunflower oils, and it must right to draw demand from price-sensitive patrons, stated a Mumbai-based dealer with a worldwide commerce home.

“Even in January, exports are prone to stay subdued,” the dealer stated.

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

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