Malaysia Palm Oil Exports and Production Decline

Malaysia's palm oil stocks fell for the third consecutive month in December, reaching a 19-month low of 1.71 million metric tons, as reported by the Malaysian Palm Oil Board (MPOB). Crude palm oil production decreased by 8.3% to 1.49 million tons, while exports dropped 9.97% to 1.34 million tons. The decline in exports and production was attributed to adverse weather conditions and a significant rise in local consumption, which surged 53% in December. Despite the overall inventory decline, biodiesel exports saw a notable increase of 29.69%. Forecasts prior to the release of the MPOB data had estimated inventories and production slightly higher than actual figures. The market outlook remains cautious as analysts predict subdued exports may continue into January.