Malaysia's palm oil stocks fell for a fifth month in February to their lowest in 22 months as production declined, outweighing a reduction in exports, data from the industry regulator showed on Monday.
The drop in stocks in the world's second-largest palm oil producer after Indonesia could support benchmark futures, traders said, even as the tropical oil's premium over soy oil reduces demand from price-sensitive importing countries.
Malaysia's palm oil stocks at the end of February fell 4.31% from the previous month to 1.51 million metric tonnes, the lowest level since April 2023, according to the Malaysian Palm Oil Board, or MPOB. Crude palm oil production in February fell 4.16% to 1.19 million tonnes, the lowest level in three years, after floods disrupted production. Palm oil exports fell 16.27% to hit 4-year low of 1 million tonnes, it said.
A Reuters survey had forecast inventories at 1.48 million tonnes, with output seen at 1.16 million tonnes and exports at 1.05 million tonnes.
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