12 Feb 2019
Malaysian Palm Oil Board (MPOB) has released its monthly production data on Monday and as expected, stock pile up was seen reducing world's second largest palm oil producer.
Palm oil production in Malaysia reached 1.74 million tons in the month of January compared to 1.81 million tons produced in December. Though reduction in production was lower than market expectation, huge increase in exports (1.68 million tons against 1.38) has brought down inventories to 3 million tons which reached all-time high levels of 3.22 million tons in December.
Palm oil imports from China increased significantly in the month of January as country piled up sufficient stock ahead of Lunar holidays in February. While, imports from India has been rising since country reduced import duty on crude and refined palm oil in early January.
However, palm oil exports have again decelerated in during 1-10 February, which kept palm oil futures at Kuala Lumpur under pressure.