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Malaysia's CPO production fell 16.6% year-on-year to 1.54 million tonnes in November, with Sarawak's output down 17.8% month-on-month. BIMB Securities expects lower output and stockpiles, along with a rally in soyoil prices, to keep palm oil prices elevated.
Lower Malaysian palm oil output tightens global vegetable oil supply, supporting palm and soy oil prices and raising the cost of fats used in feed.
themalaysianreserve.comDec 31, 2019After 149 past bullish report events, Palm Oil moved a median +0.5% over 5 sessions (57% higher; middle half -1.1% to +1.8%), and +0.8% over 20.
After 296 past bullish report events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.8% to +2.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
A 16.6% year-on-year drop in Malaysian November output and lower stockpiles tightened supply, supporting higher prices into year-end.
A 16.6% year-on-year drop in Malaysian output, lower stockpiles and a soyoil rally tighten palm supply and support prices heading into the move.
