By the end of January, palm oil inventories in Malaysia rose for the first time in three months amid a sharp increase in imports of these products. According to analysts of the National Palm Oil Council (MPOB) the reserves of “palm” in Malaysia added more than 3% and reached 2.27 million tons.
Production of the commodity continued to fall following its previous performance, this time by 14.73% to 1.38 million tons, the lowest level in 11 months.
“The decline was due to the tropical monsoon at the end of the year and flooding that interfered with harvesting,” the report said.
As for exports, they weakened by nearly 23% to 1.14 million tons in January. The reason for the decline in shipments is sluggish demand from Chinese and Indian importers, MPOB added.
“Malaysian exports are expected to recover in February due to the limited supply of Indonesian product in the global market,” Sunvin Group spokesman Anilkumar Bagani said.
In addition, imports more than doubled to 144,900 tons during the reporting period.