Inventories fell 1.09% from October 2023 to 2.42 million metric tons, the first decline in stocks at Malaysia, the world’s second-largest palm oil producer since April.

Crude palm oil production declined 7.66% from October to 1.79 million tons in November, while palm oil exports plunged 5.67% to 1.40 million tons, MPOB said.

A Reuters survey forecast inventories at 2.44 million, a 0.48% decline from October, production at 1.81 million tons, and exports at 1.53 million tons.

Malaysian palm oil gains

“The MPOB data appears neutral, given the marginal drop in stocks, yet it is expected to halt any further big decline in palm oil prices.

With production steadily decreasing, this trend is anticipated to persist into December,“ said a New Delhi-based dealer with a global trade house.

The focus will now move to December palm oil export and production performance, with early trends suggesting both are dropping, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

“The winter period in key destinations India, China, and Europe, and additionally the political scenario in Argentina, and the weather conditions in South America, will be the main drivers for global veg oil markets for the next couple of months,” Bagani said.