The inventory level of the product exceeded the expectations of market operators (approximately 45 tons) and was the result of lower than expected exports in the last months of the year.

So, at the end of December, the volume of palm oil exports from Malaysia amounted to 1.42 million tonnes, which is 36 thousand tons lost to the expectations of market operators. This situation, in turn, was largely associated with the strengthening of the Malaysian ringgit against the U.S. dollar, which over the past 2 months increased by more than 4%, reducing the attractiveness of palm oil in the world market.

In addition, the decline in domestic production of the product in the last months of 2017 was not as significant as expected. So, at the end of December, Malaysia was produced 1.83 million tons of palm oil, which is 5.6% below the November figure, but is 20 tons – above expectations.

However, in connection with the renewal of the export tax on the products until the end of March, and with the approach of the New year celebrations in China, the shipment of palm oil will significantly increase.

It is also reported that the volume of palm oil production in Malaysia by the end of 2017 amounted to 19.9 million tons from 17.3 million tons a year earlier, while its exports increased by 3.1% in the year to 16.6 million tonnes, which is nonetheless, lower than in 2015 (17.4 million tons).

Photo: zozhnik.ru