Malaysian Palm oil Prices fell below MYR 3,900 per tonne to their lowest in one month, extending its retreat from the one-month high of MYR 4,250 touched on January 3rd, amid weakened demand.
The index tracked a decline in other vegetable oils, as lower crude oil benchmarks weakened demand for alternative biofuel feedstock. Exports from Malaysia, the world’s second-largest producer during January 1-10 slumped between 44.6% – 51% from the same period, as shipments to India and China slowed, cargo surveyors data showed.
Meanwhile, palm oil end-stocks in Malaysia fell in December to the lowest since August, as widespread flooding hit production during the year-end monsoon season, Malaysian Palm Oil Board (MPOB) data showed on Tuesday.
Ivy Ng, regional head of plantations research at CGS-CIMB Research expected Malaysia’s production to rise 3.3% to 19.1 million tonnes this year, as labour shortage issues will likely ease in mid-2023, although production costs may stay high
