Malaysia’s palm oil output fell to a 19-month low in December as production fell By Reuters

By Ashley Tang and Rajendra Jadhav

KUALA LUMPUR/MUMBAI (Reuters) – Malaysia’s palm oil output fell for a third straight month in December to the lowest since May 2023, as production fell due to floods, data from the regulator showed. industry shown on Friday.

A drop in the stock of the world’s second-largest palm oil producer after Indonesia could support benchmark futures, which have corrected sharply in recent weeks after rising to record highs almost 2-1/2 years in November.

Malaysian palm oil stocks at the end of December fell 6.91% from a month earlier to a 19-month low of 1.71 million tonnes, data from the Malaysian Palm Oil Board (MPOB) showed.

Crude palm oil production was down 8.3% to 1.49 million tonnes, the lowest since March 2024, while palm oil exports fell 9.97% to to 1.34 million tons in six months.

A Reuters poll had inventories forecast at 1.76 million tonnes, production at 1.48 million tonnes and exports at 1.38 million tonnes. (PALM/POLL)

December’s MPOB data was a bit of a letdown for the market, as inventories fell more than forecast due to a rise in domestic consumption, said Anilkumar Bagani, head of research at the vegetable oil exporter. Mumbai Sunvin Group.

Malaysia’s palm oil consumption rose 53% in December from a month earlier to 309,865 tonnes, the data showed.

Palm oil is still priced higher than soybean and sunflower oil, and needs to be adjusted to attract demand from price-conscious buyers, said a Mumbai-based trader with a trading house of the world.

“Even in January, exports may still be down,” said the businessman.

The following is a breakdown of Malaysian Palm Oil Board figures and Reuters estimates for December (figures in tonnes)(PALM/POLL):

December December 2024 November December

2024 2024 2023 Selection

Result 1,486,786 1,483,000 1,621,294 1,550,796

Stocks 1,708,747 1,755,000 1,835,641* 2,290,793

Imports 1,341,732 1,375,000 1,490,293* 1,362,145

Imports 37,917 22,500 22,081 40,062

*represents figures updated by the Malaysian Palm Oil Board