A survey on Wednesday (January 12, 2022) found that Malaysia's palm oil inventories had probably shrunk to a five-month low at the end of December due to a slowdown in production. The stock of the world's second-largest producer is forecast to fall 4.9% from the previous month to 1.73 million tonnes, according to the average estimates of the ten growers, traders and analysts surveyed. Production is pegged to plunge 8.6% to 1.49 million tonnes, the lowest since March, as severe flooding across the country disrupted harvesting activities.
"The extent of the damage done by the recent floods in Peninsular Malaysia has further stretched the output capacity of the plantations and estates," said Lee Toong Huang, General Manager of Kwantas Oil.
Exports are seen declining 4.9% to 1.4 million tonnes, in line with cargo surveyors' estimates. Breakdown of December estimates (in tonnes):| Range | Median | |
| Production | 1,390,000-1,780,000 | 1,493,894 |
| Exports | 1,350,000-1,420,000 | 1,396,071 |
| Imports | 0-150,000 | 86,500 |
| Closing stocks | 1,666,000-1,900,000 | 1,728,508 |
Official stocks of 1,816,879 tonnes in November plus the above estimated output and imports yield a total December supply of 3,397,273 tonnes.
Read details. |Source: Online/KSU
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