Malaysian palm oil futures increased after slipping in the prior four sessions, hovering near MYR 3,660 per tonne, supported by robust demand from top buyer India. In December, palm oil imports from the South Asia nation rose to their highest in four months as purchases of refined palm olein jumped because of competitive prices. Meanwhile, Malaysia’s Palm Oil Association estimated production fell by 8.59% between Dec. 1-20. At the same time, analysts warned that global palm oil production is likely to drop this new year due to persistently dry El Nino weather in large parts of Asia. The contracts earlier in the week hit their lowest level in over two months of around MYR 3,620, due to concerns about lower exports. Cargo surveyors’s data from AmSpec Agri and Intertek Testing Services indicated that shipments of Malaysian palm oil products for December fell between 2.1% and 9.9% from November. In 2023, palm oil prices sank around 11%, their second straight annual loss.
