A global glut of palm oil should be hindering price appreciation, but that hasn’t been the case recently. Prices are up considerably, but if bearish fundamentals prevail, the rise may be short-lived. Malaysian palm oil stocks were at a record 3.007 MMT at the end of November (the previous record was set in November 2015). Indonesian supplies are just as notable, with stocks estimated at over 4.4 MMT.
According to the Societe Generale de Surveillance, total Malaysian palm oil exports were 345,219 MT for the first ten days of December. This volume is down 10% from that reported last month and down 8% YOY.
Palm kernel oil production
Source: Malaysian Palm Oil Board
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