Independent Malaysian palm oil mills may struggle to sell crude palm oil over the next two months as refineries halt deliveries amid record-high inventories. Some mills are already accumulating unsold stocks and running short of storage, and sources warn they may soon stop buying fresh fruit bunches from smallholders.
Refinery purchase cuts and record stocks point to bearish near-term pressure on Malaysian crude palm oil prices and a supply overhang for palm-based feed ingredients, while smallholder income risk could affect future output.
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