Market expectations suggest that palm oil production in Malaysia may decrease by 15% to 17% in January; And palm oil exports will increase significantly, which is related to seasonal demand before the Spring Festival and Ramadan in February. The broker stated that if these two factors (declining production and increasing exports) can continue until March, the ending inventory may significantly decrease.
The market expects a 15% -17% decrease in palm oil production in Malaysia in January, with a significant reduction in supply; At the same time, exports increased significantly, boosted by seasonal demand before the Spring Festival and Ramadan in February. If this trend continues until March, the ending inventory may decrease significantly, and the supply and demand pattern will tighten. This will significantly push up spot prices, as the dual benefits of supply contraction and demand expansion create strong upward pressure on prices.
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