Supply and demand tightens as Malaysian palm oil inventories decline

⑴ According to data from the Malaysian Palm Oil Board, Malaysia's palm oil exports in January reached 1.484 million metric tons, an increase of 11.44% compared to the previous month. ⑵ However, crude palm oil production in January was 1.577 million metric tons, a significant decrease of 13.78% from the previous month. ⑶ The increase in exports and the decrease in production led to a significant reduction in end-of-month inventories to 2.815 million metric tons, down 7.72% from the previous month. ⑷ Among them, crude palm oil inventories fell to 1.673 million metric tons, a month-on-month decrease of 8.18%; processed palm oil inventories dropped to 1.143 million metric tons, a month-on-month decrease of 7.05%. ⑸ In addition, palm kernel oil exports fell sharply by 44.03% month-on-month to 56,000 metric tons, while palm oil imports slightly decreased by 2.93%. ⑹ The supply and demand data together indicate a tightening market supply, which may support future palm oil prices.