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Palm Oil Hits Four Weeks Higher As Low Production Concern

KUALA LUMPUR: Malaysia’s palm oil once again hit 4 weeks high ,As the low production concern due to the provoking floods situation . which hits seven states of malaysia Read More  .

It squeezed  and by slump in production,  Stocks at the world’s second-largest producer are forecast to fall 4.9% from the previous month to 1.73 million tonnes, according to the median estimate of ten planters,

Production is pegged to plunge 8.6% to 1.49 million tonnes, the lowest since March, as severe flooding across the country disrupted harvesting activities.
Weak output is set to support prices as plantations enter the seasonal low production in the first quarter of 2022, while exports are expected to remain subdued due to high prices, said William Simadiputra, analyst at DBS Vickers Securities in Jakarta.

The Council of Palm Oil Producing Countries (CPOPC) estimates a sharp increase in demand due to economic recovery with China’s palm oil imports rising to 7.2 million tonnes in 2021/22, from 6.8 million tonnes in 2020/21

European Union’s imports increasing to 6.9 million tonnes from 6.2 million tonnes in 2020/21. Palm oil booked an over 30% gain in 2021,

It Having touched an all-time high of MYR 5,071 on October 20th as demand for edible oils rebounded and supply remained limited due to a shortage of workers in Malaysia and heavier rains than usual in key growing areas.