Malaysia's end-Dec palm oil stocks seen falling to four-month low

KUALA LUMPUR (Jan 5): Malaysia's palm oil inventories at end-December likely shrank to the lowest in four months as production and exports slowed, a Reuters survey showed on Thursday (Jan 5). Stockpiles fell 5.3% from the month before to 2.17 million tonnes, the lowest since August, according to the median estimate of nine traders and analysts polled by Reuters. Output fell for a second consecutive month as tropical storms and heavy flooding disrupted harvesting and hit supply lines across the world's second-largest producer. Production declined 3% from November to 1.63 million tonnes, the smallest since July. Exports also fell 1% to 1.5 million tonnes, with cargo surveyors indicating a slump in shipments to key market China. Demand from China has declined in recent years due to strict Covid-19 containment measures, but consumption is expected to slowly recover this year as Beijing shifts away from its stringent policies. However, raging Covid-19 infections in the world's most ...