Malaysia Palm Reserves Seen at 6-Month Low as El Nino Bites
- Inventory may drop to 2.33 million tons, lowest since July
- El Nino-linked dry weather curbs output in Malaysia, Indonesia
The lagged effects of “unfavorably” dry weather last year has been reflected in significantly reduced palm yields in several parts of Malaysia and Indonesia in December and January.
Photographer: Goh Seng Chong/BloombergPalm oil stockpiles in Malaysia probably declined to the lowest since July after El Nino-induced dry weather reduced production in the world’s second-largest grower.
Inventories slid 11 percent to 2.33 million metric tons in January from a month earlier, according to the median of 8 estimates in a Bloomberg survey of planters, traders and analysts. The drawdown would be the steepest in a year, according to Malaysian Palm Oil Board data compiled by Bloomberg. Output dropped 15 percent to 1.19 million tons, the lowest since February, and exports were about 9 percent lower at 1.35 million tons. The board will release official data by Feb. 10.