Malaysia’s palm oil stocks likely hit 6-1/2-year high on slow exports, record November production

Malaysia’s palm oil inventories likely rose to a more than six-and-a-half-year high in November, as exports slumped amid record production for the month, a Reuters survey showed on Wednesday. Rising inventories in the world’s second-biggest producer of the tropical oil could weigh on benchmark Malaysian futures FCPO1!, which are trading near their lowest level in nearly five months. Palm oil stocks were estimated to have risen 7.78% month-on-month to 2.66 million metric tons in November, their highest since April 2019, according to a median estimate of 10 traders, planters, and analysts polled by Reuters. Crude palm oil output was estimated at 1.98 million tons, down 3% from the previous month, but still the highest November production on record. The decline is milder than the average 6.8% drop typically recorded in November over the past 25 years. Production was seen hovering near 2 million tons for a second straight month, supported by favourable weather, improved labour ...