KUALA LUMPUR: Malaysian palm oil inventories likely tumbled to its lowest since June 2017, as dry weather and lower fertiliser usage in the second largest palm producer early last year suppressed output to near four-year lows, a Reuters surveyed showed.
January stockpiles in Malaysia are forecast to fall 12% to 1.76 million tonnes from December, the lowest in 2½ years, according to a median estimate of nine planters, traders and analysts polled by Reuters.
Production also likely dropped 9% to 1.21 million tonnes from the month before, its lowest since March 2016.
“Output fell on a combination of lower harvesting and milling activities due to the Lunar New Year holidays, ” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
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