End-November palm oil stocks down slightly as output falls

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Production is pegged to decline 5% from October to 1.72 million tonnes.

Stockpiles in the world’s second-largest producer were seen falling 0.47% from the previous month to 2.39 million tonnes, according to the median estimate of six traders and analysts polled by Reuters.“The La Nina weather phenomenon is underway in the Pacific Ocean in October and strengthened in November, impacting key oil palm planted areas in Borneo and potentially the east coast of Malaysia,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

The ringgit looks set to rise with a new government in place in Malaysia, Varqa said, adding that would make exports expensive, but that it might be offset by higher Indonesian palm prices inflated by levy and taxes. The ringgit, palm’s currency of trade, has strengthened in the past week after the appointment of new Prime Minister Datuk Seri Anwar Ibrahim, making the edible oil more expensive for buyers holding other currency.

 

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