Against the backdrop of the El Niño phenomenon intensifying or impacting production next year, Malaysia's inventory of palm oil, the world's most consumed vegetable oil, is expected to rise to a historical record last month, increasing the supply buffer. A sharp increase in supply may exacerbate the recent drop in prices. Traders are waiting for export volumes to major markets such as India to absorb huge inventories. Jacquelyn Yow, head of research at CGS International Plantation, said that although palm oil production usually peaked in September and October, the increase in production exceeded expectations and pushed up inventories, and prices are likely to remain under pressure. The range is 4,300 ringgit to 4,500 ringgit per ton. “The sudden sharp increase in inventory has had an impact on the market,” she said.
Zhitongcaijing · 2d ago
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Against the backdrop of the El Niño phenomenon intensifying or impacting production next year, Malaysia's inventory of palm oil, the world's most consumed vegetable oil, is expected to rise to a historical record last month, increasing the supply buffer. A sharp increase in supply may exacerbate the recent drop in prices. Traders are waiting for export volumes to major markets such as India to absorb huge inventories. Jacquelyn Yow, head of research at CGS International Plantation, said that although palm oil production usually peaked in September and October, the increase in production exceeded expectations and pushed up inventories, and prices are likely to remain under pressure. The range is 4,300 ringgit to 4,500 ringgit per ton. “The sudden sharp increase in inventory has had an impact on the market,” she said.
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