Malaysia palm oil hovers at 8-year highs as inventory falls to 3-year low
11.11.2020 (www.icis.com) - SINGAPORE (ICIS)--Malaysia's palm oil prices continued to hover at eight-year highs after industry data showed a decline in both stock and production in October.
Crude palm oil (CPO) prices closed higher on 5 November at $831.73/tonne from $813.93/tonne in the previous session; while palm kernel oil (PKO) prices increased to $1,044.37/tonne from $960.71/tonne over the same period.
This came after early estimates suggested a sharp drop in stock in October.
Data from the Malaysian Palm Oil Board (MPOB) released on 10 November confirmed that palm oil stock in October has dropped to the lowest level in more than three years.
According to research firm Phillip Futures, this was due to "tight production and higher exports following seasonal buying from key importer India".
It warned that palm oil prices may "be challenged by lower November exports as shipments to India dry up post-Diwali".
Diwali is the Hindu Festival of Lights which falls on 14 November this year.