Palm oil stockpiles in Malaysia probably shrank for a sixth month to the lowest level in a year as long holidays hit harvesting and slowed output growth in the world’s second-biggest grower. Production did not increase as much as initially expected as harvesting activity and processing of palm fruit slowed down in the first half of April. But output could start to climb from May and post a robust, double-digit recovery, he said. Crude palm oil output rose 4.3% to 1.45 million tons, as many plantation workers returned to their hometowns due to Ramadan and Eid al-Fitr holidays. .However, the recent price correction in palm oil had caused this spread to evaporate, which could attract fresh buying from destination markets such as India and China.
