Going forward, production this year is widely expected to again stay below 20 million tons due to the lingering effects of dry weather from 2019, coupled with declining yield trends in the No. 2 producer, Varqa said.
KUALA LUMPUR: Palm oil inventories in Malaysia, the world’s second-largest producer, likely plunged to their smallest in over two years in December as output weakened to an 18-month low.
That could add fuel to the rally in benchmark futures in Kuala Lumpur. Prices have surged to a three-year high on concerns over a supply squeeze due to lower production and higher biofuel consumption in the world’s top growers Indonesia and Malaysia. The tropical oil climbed 44% in 2019, its biggest gain in a decade.
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