Hellenic Shipping News (13/01/2020) Malaysia’s palm oil inventory fell 10.99 percent month-on-month to 2.01 million tonnes in December last year, official data showed Friday.

According to Malaysian Palm Oil Board statistics, Malaysia’s crude palm oil (CPO) production for the month also dropped 11.58 percent to 1.02 million tonnes.

Meanwhile, palm oil exports decreased by 0.67 percent to 1.39 million tonnes.

Hong Leong Investment Bank said in a note Friday that it believed CPO price will remain considerably high in the longer term, supported by Indonesian government’s launch of B30 biodiesel, imminent palm output deficit arising from drought and cutback in fertilizers, and African Swine Flu which has yet to show sign of abating.

“Given our more bullish stance on CPO price (in particularly, first quarter), we raise our average CPO price assumption in 2020 to 2021 by 150 ringgit per tonne to 2,550 ringgit (625 U.S. dollars) per tonne,” the research house added.

Read more at https://www.hellenicshippingnews.com/malaysias-palm-oil-inventory-falls-over-10-pct-in-december-2019/