MPOB data is seen as bearish after exports fell at much lower than market expectation while stocks did not drop as much as anticipated mitigated by a sharp rise in imports reaching 11 months high. Nevertheless, CPO Futures clawed back to above 3400 on the benchmark month with spurts of sell-off. Attention will now be on December exports widely expected to recover from the low in November. First, 10 days of December export fell by 6%, an improvement from –21% in the first 5 days of the month. November output emerged at the low end of expectation but this was expected due to weaker production cycle towards the end of the year. Malaysia seasonal peak production months are Aug-Sept-Oct.
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