Malaysia's January palm oil production could be lowest since April 2023

Published 2024년 2월 13일

Tridge summary

Malaysia's palm oil production is predicted to drop by 11-13% in January due to heavy rainfall and flooding in key production areas, leading to transportation issues. This decrease in production could potentially increase palm oil prices by $20 to $50 a tonne. However, demand may be impacted by India's preference for soybean oil over palm oil due to a minimal price difference. The situation, especially changes in demand in China post-Lunar Festival celebrations, needs close monitoring.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Information received from market participants suggests that the release of the Malaysian Palm Oil Board's (MPOB) latest report on February 13 could bring a few surprises. Market participants surveyed by Mintec point to a potential decline of 11-13% in Malaysia's palm oil production in January compared to December. The decline was due to unusually heavy rainfall, which caused flooding in key production areas and increased difficulties in transporting fresh fruit bunches (FFB) to processing centres. Malaysia's palm oil production could potentially reach 1.36-1.38 million tonnes in January, the lowest monthly output since April 2023, according to Mintec calculations using data provided by market participants. If reflected in the MPOB report, such low production could push palm oil prices higher in the coming weeks, with many industry insiders expecting a possible rise of $20 to $50 a tonne, according to sources familiar with the matter. Market participants have provided Mintec with ...

Source: Oilworld