Low production sees Malaysian palm oil stocks fall by 5% in December

In Malaysia, low palm oil production has forced the country to tap into its reserves for the first time since June, likely cutting stocks by more than 5% to 2.76 million metric tons. Production fell by 18% but was partly compensated by 7% few exports. Production is expected to fall further during January and February, which should help to offset lower demand from China and India. China isn’t seen likely to ramp up purchases ahead of the Lunar New Year as it traditionally does, having stocked up over the past couple of months.