Malaysian palm oil futures traded below MYR 3,850 per tonne, below a 2-1/2 month high of MYR 4000 hit in the middle of November primarily driven by weaker demand and increased production and exports from the biggest producers Indonesia and Malaysia. Shipments of Malaysian palm oil products for November were estimated to be up between 2% and 11% from the previous month, data from surveyors Intertek Testing Services and AmSpec Agri Malaysia showed. Still, the World Bank projects that palm oil production in 2023-24 will rise only by 0.2 million tonnes, much lower than the average annual growth of 2.5 million tonnes in the past ten seasons, as El Nino-related moisture deficits are reported in several parts of Indonesia between August and October. At the same time, Indian buyers reduced their orders for December and January shipments of palm oil because of escalating prices as refiners are grappling with negative margins stemming from substantial imports made in recent months.
