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/Bloomberg

Palm 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.

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