13.11.2018 (The Edge Markets MY) - JAKARTA (Nov 13): While production in November is likely to be lower than a month earlier, it will still be relatively elevated and probably lead to higher stockpiles, Ong Chee Ting, Maybank Kim Eng analyst writes in Nov 13 report.

* Monthly output in Malaysia may have peaked last month.

** NOTE: Palm reserves in World No. 2 grower climb less than forecast

* Maybank now sees price recovery in 1Q 2019, instead of earlier prediction of 4Q, as demand stays weak and with output peaking so late in the year.

** NOTE: Palm prices near bottom, face short-term pressure: Golden Agri.

* Price downtrend seen limited due to wide discount in palm oil versus soybean oil, rapeseed oil and gasoil.

* Although palm oil-gasoil spread has narrowed compared to a month earlier on a sharp fall in Brent crude prices from its recent peak, it’s still at a healthy level.

** “With Indonesia and Malaysia enhancing their biodiesel program in 2019, this will help to drawdown stockpiles quickly, providing support to prices in 2019”.