PalmoilHQ Malaysian Palm Oil Stockpiles and Output Drop to Nine-Month Low

February 11, 2009 13:12 GMT+8
Palm oil stockpiles in Malaysia, the world’s second-largest producer, dropped in January to the lowest in nine months.

Inventory of the edible oil, used mainly in food, dropped 8.3 percent from December to 1.83 million tons, the Malaysian Palm Oil Board said today. It hasn’t been lower since April 2008 when it reached 1.79 million tons.

Output fell 10 percent to 1.33 million tons, also a nine- month low. Exports had the biggest drop since January last year, falling 17 percent from December’s record to 1.35 million tons, the board said.

Palm oil for April delivery dropped 1.1 percent to 1,948 ringgit ($418) a metric ton on the Malaysia Derivatives Exchange at the 12:30 p.m. trading halt. The board’s data was announced after the halt.