Bloomberg Palm Oil Rises as Inventory Falls Amid Seasonal Production Low

Feb. 12 (Bloomberg) -- Palm oil futures in Malaysia gained after stockpiles in the world’s second-biggest producer of the commodity dropped to a nine-month low.

Output of the vegetable oil in the Southeast Asian country fell in January for a second month to 1.33 million metric tons, the nation’s palm oil board said yesterday. This cut stockpiles 8.3 percent to 1.83 million tons.

“Short-term fundamentals have improved,” according to a report by Maybank Investment Bank today. Production dropped as rain in the eastern states of Sabah and Sarawak reduced yields.

Palm oil for April delivery gained as much as 1 percent to 1,945 ringgit ($418) a metric ton on the Malaysia Derivatives Exchange. It was little changed at 1,925 ringgit at the midday break in trading. more...