Malaysia's Palm Oil Stocks Hit Nearly 2-Year Low in Feb as Output Drops
Malaysia's palm oil stocks fell to their lowest level in 22 months in February, dropping 4.31% from the previous month to 1.51 million metric tons, according to the Malaysian Palm Oil Board. The decline was caused by floods that disrupted production, resulting in a decrease of crude palm oil production to its lowest level in three years. Despite the drop, the ongoing supply tightness is likely to support prices due to stagnant production and a premium for palm oil over soyoil.
- The prolonged impact of supply chain disruptions on Malaysia's palm oil industry highlights the vulnerability of global commodity markets to natural disasters and climate-related events.
- How will the shift in demand patterns from countries like India, which is buying more palm oil to replenish stock, affect the long-term competitiveness of Malaysian palm oil producers?