The Star Online (15/12/2017) - KUALA LUMPUR: The demand for palm oil is likely to stay weak in December despite a recent slide in prices, according to traders in world No. 2 producer Malaysia, although exports from the country are seen to rebound in January as China stocks up ahead of the Lunar New Year.

The benchmark prices for the commodity, used to help make products ranging from instant noodles and chocolate to soap, have dropped about 12% since the start of November, standing around RM2,430 yesterday.

That fall has largely been driven by a decline in exports due to higher import duties in top edible oil consumer India, as well as by a stronger ringgit, which makes palm more expensive for foreign buyers.

“Everyone usually banks on India for demand, but the duty increase has made everything slow, so the prospect of ending the year with closing stocks at 2.7 million tonnes is high,” said a Kuala Lumpur based trader. — Reuters