Malaysia's palm oil stocks probably fell to their lowest level in 27 months in December. Both production and exports fell noticeably. This is according to a recent survey by the Reuters news agency.
Compared to November, December stocks fell by 8.51% to their lowest level since September 2017. Dry weather and a lower use of fertilizers after previously low producer prices reduced production and thus also stocks.
Stocks in the first quarter of 2020 in Malaysia and Indonesia are now the focus of market participants and analysts. Production in Malaysia fell by 12.99% to 1.34 million tons in December compared to the previous month.
Fears of a supply slump in the first half of 2020 and government regulations to use more palm oil for the production of biodiesel have caused stock prices to rise.
Palm oil futures prices rose more sharply than other vegetable oils, which is likely to encourage many customers to switch to other oils and products. However, India, the world's largest importer of vegetable oils, has lowered its import duties for palm oil since the beginning of the year.
Source
HANSA Terminhandel
