Palm oil stockpiles in Malaysia declined in February by the most in five years as production in the biggest supplier after Indonesia slumped to the lowest level since April 2012. Futures climbed to an 18-month high.
Palm oil climbed to the highest level since September 2012 on concern that a prolonged dry spell in Malaysia and Indonesia, the biggest growers, may reduce supplies of the world’s most-used cooking oil.
Palm oil stockpiles in Malaysia, the world’s biggest grower after Indonesia, probably tumbled last month to the lowest level since September as production declined to a one-year low, a Bloomberg survey showed. Futures climbed to the highest level since 2012.
Palm oil advanced to a 17-month high on speculation that stockpiles in Malaysia, the world’s biggest supplier after Indonesia, probably tumbled last month to the lowest level since September as production declined.
Palm, the world’s most-consumed edible oil, will see prices influenced by a potential El Nino weather event and increased biodiesel demand from Indonesia, according to Dorab Mistry, director at Godrej International Ltd.
Palm oil gained for a third day to trade near the highest level in 17 months on concern that dry weather may curb output in Malaysia and Indonesia, the world’s biggest producers of the oil used in food and fuel.
A jump in palm oil consumption for biodiesel in Indonesia, the world’s biggest supplier, will probably mean that shipments fail to increase this year for the first time since 2010 even as production climbs to a record.
Palm oil inventories in Indonesia, the biggest supplier, probably decreased in January to the lowest since June 2012 as production fell for a second month. Futures advanced to the highest since Dec. 9.