Palm prices end lower after MPOB data shows 6-1/2-year-high stocks

Malaysian palm futures fell on Wednesday, after the monthly data released by the Malaysian Palm Oil Board showed that the country's palm oil stocks were at the highest level they had been in six and a half years.

The rise of 13%

MPOB reported that the MPOB increased the amount of metric tonnes from the previous month by 2.84 million to the highest level since March 2019.

The benchmark palm-oil contract for February delivery on the Bursa Derivatives Exchange dropped 45 ringgit or 1.1% to 4,061 Ringgit ($986.64) per metric ton.

The?world's?second-largest producer of tropical oil, Malaysia could be weighed down by rising inventories.

Dalian's palm oil contract, which is the most active contract, dropped by 1.25%. Chicago Board of Trade soyoil prices rose by 0.24%.

Palm?oil monitors the price changes of competing edible oils in its bid to gain a share?of global vegetable oil market.

AmSpec Agri Malaysia, an independent inspection company, reported on Wednesday that exports of palm?oil from Malaysia for the period December 1-10 dropped 10.3%, to 396.477 metric tonnes, compared with 442,028 tons shipped in November 1-10.

The Malaysian Ringgit, the palm industry's currency of trade, fell by 0.07% in relation to the U.S. Dollar, making it slightly cheaper for holders of foreign currencies.

(source: Reuters)