05.12.2019 (SINGAPORE (Reuters) - Malaysian palm oil stockpiles likely fell to the lowest in more than a year in November, as production fell over 10% during the month, a Reuters survey showed on Thursday.

Inventories in the world’s second-largest palm oil producer are forecast to fall 5.7% from October to 2.22 million tonnes, according to a median estimate of nine planters, traders and analysts polled by Reuters, the lowest since July 2018.

“Malaysia’s palm oil stocks likely fell... due to lower output,” said Ivy Ng, regional head of plantations research at CIMB Investment Bank said in a research note to clients.

The poll pegged November output to fall for the second consecutive month to a 5-month low. It likely fell 10.4% in November from a month ago to 1.61 million tonnes. This would be the biggest drop since February, when it fell 11%..

Malaysia’ palm oil exports in November are seen falling 5.2% to 1.56 million tonnes from October.

“Palm oil exports to China grew 56% month-on-month but this was more than offset by weaker exports to Africa, India and the European Union,” said Ng.

However, domestic consumption outlook of the edible oil is still bullish because of a push to use more palm oil in biofuels by Malaysia and Indonesia.

Implementation of biofuels mandates in Malaysia and Indonesia is expected to increase consumption of palm oil up to 1.3 million tonnes and 10 million tonnes per year, respectively, with the latter planning to reduce fossil diesel fuel consumption by 165,000 barrels per day (bpd).

Palm futures have been soaring over the last few months on supply shortage worries and traded a two-year high by midday on Thursday.

Leading analyst James Fry said last month that growth in palm oil production will slow in the next few years, helping reduce stockpiles and boost prices.

Official palm oil data will be published by the Malaysian Palm Oil Board (MPOB) ‪after 0430 GMT on Dec. 10.