Still, “we are not out of the woods yet, with inventories just a tad shy of three million tonnes and supplies sitting in tanks awaiting delivery,” he said. The ringgit is expected to strengthen by mid-year while Brazil may see a bumper soybean crop — both factors are bearish for palm oil’s demand outlook, he said.
(Jan 7): Palm oil rose as investors hoped for a rebound in Malaysian shipments and further production declines, although swelling stockpiles in the world’s second-largest grower capped gains.
There’s some optimism in the market after the jump in Malaysian exports in early January, alongside expectations for production to see a big drop this month, according to Paramalingam Supramaniam, a director at Selangor-based brokerage Pelindung Bestari Sdn.
