11 Jan 2018
After nearly 1% correction on Thursday, crude palm oil futures in Malaysia is again trading strong during market hours on Friday. Crude palm oil (CPO) futures which were on a verge on recovery, have again come under pressure on yesterday as official data from Malaysian Palm Oil Board (MPOB) showed a steep rise in inventories.
As per MPOB data, palm oil production in Malaysia has marginally declined by 2% at 1.81 million tons, while marginal increase export of 1.38 million tons has pushed the stock pile up at record high levels of 3.22 million tons.
Though the data is certainly bearish for palm oil, good export prospects amid rising demand by India, which has recently lowered import duty on palm oil and China, which has increased its imports following new year holidays in the country in early February, will limit the fall in palm oil in coming sessions. Moreover seasonal fall in production in coming months and surging crude oil will support CPO prices.