Malaysia’s Jan 2022 palm oil inventory unexpectedly fell as export drop outpaced output decline

Malaysia's Jan 2022 palm oil inventory unexpectedly fell as export drop outpaced output decline

KUALA LUMPUR (Feb 10): Malaysia’s January 2022 total palm oil inventory, comprising crude palm oil (CPO) and processed palm oil, unexpectedly fell from a month earlier as export of the commodity dropped by a larger quantum compared to its production, the Malaysian Palm Oil Board (MPOB) said on Thursday (Feb 10).

In a statement on Thursday, MPOB said Malaysia’s January 2022 total palm oil inventory fell 3.85% to 1.55 million tonnes from 1.61 million tonnes in December 2021 as CPO production dropped 13.54% to 1.25 million tonnes from 1.45 million tonnes.

MPOB said the country’s palm oil exports declined 18.67% to 1.16 million tonnes from 1.42 million tonnes.

Malaysia’s January 2022 total palm oil inventory’s 3.85% drop was unexpected based on a Reuters survey which indicated that the country’s total palm oil inventory could have risen 0.34% during the month.

The survey involving traders and analysts showed that the country’s CPO production could have shrunk 10% in January 2022 while “exports are expected to slump 21%”, the newswire reported.

Source : The Edge Markets

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