As specified, this trend could contribute to the strengthening of world prices for palm oil, after quotes on the last trading sessions on the stock exchange in Kuala Lumpur dropped due to a significant increase in India the import customs duty for palm oil.

Palm oil production in Malaysia in February, according to preliminary data, is estimated at 1.4 million tons, which is 12% lower than the previous month. It should be noted that the expected decrease of this index in the I quarter of the current year is due to seasonal factors, while in the second half of the year output of oil may exceed the level of the previous season in the same period.

Exports of Malaysian palm oil in February is estimated at 1.33 million tonnes, which is 11.9% lower than in the previous month. The reduction in supply to world markets was primarily due to reduced demand from China due to high ending stocks of vegetable oils in the country, and also in connection with the increase in the country in the reporting month purchases of soybeans.

Photo: bharian.com.my