Palm oil climbed from its lowest level in more than two months on persisting concerns over shrinking inventories in the second-biggest grower Malaysia. Stockpiles dropped
6.9% from a month earlier to 1.71 million tons in December, a third month of declines and the lowest since July, according to data released by the Malaysian Palm Oil Board
Friday. That compared with a median estimate of 1.76 million tons in a Bloomberg survey published Monday. Production fell more than 8%, while exports slumped almost 10%,
data showed. The MPOB data is slightly bullish in the short term as the numbers came in below expectations, said an analyst. Most-active palm oil futures jumped as much as
1.2% to 4,349 ringgit a ton in Kuala Lumpur, while soyoil soared as much as 3.5% in Chicago, a fifth day of gains. Prices could trade between 4,550 ringgit and 4,600 ringgit
next week, with a rally in soybean oil seen providing further support to the market, said another analyst. The upside, however, could be capped on Indonesia’s tighter rules on
exports of used cooking oils, he said.(Source:Bloomberg)
