The reason is the slow pace of recovery of production after the El niño, and a reduction in the number of working days in August and September.

Estimates of the Malaysian Council for palm oil in the 2016/17 season the production was at the level of 18.9 million tons (USDA FAS rating: 19.5 million tons) and exceeded the result of the 2014/15 season – 19.88 million tons. In addition, the decline in imports contributed to the increase of export duties on palm oil from 5.5% in July 2017. to 6.5% in September.

The fee contributes to the conservation of the stocks at a level that prevents panic in the market. A sufficient inventory level of palm oil is 1.5-2 million tons.

In the 2017/18 season, the USDA predicts growth of palm oil production in Malaysia by 1.5 million tons to a new record - 21 million tons. Exports will increase by 1 million tons to 18 million tons on expectations of higher demand from China, India and Pakistan.

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