MPOB December— Palm oil stocks falls sharply on lower production and higher usage | MPOB Dec Canva

Malaysia palm oil stocks ended the year down 12.88% at 1.583 mil tons from Nov but 25% higher than the same time a  year ago following production declining at low end of expectation and domestic usage rising to multi-year high. Government and non-government spending on food aid to assist flood victims following unusually heavy rains resulted in domestic palm use rising by 31% to 373,000 tons from Nov. Full year production fell to the lowest in 5 years as expected after finishing 2021 at 18.11 mil tons but production is poised to rebound in 2022 to 19.20 mil tons based on weather conditions returning to favourable conditions and labour supply rising from the previous year to aid higher crop recovery. Exports concluded the year at 10.61% lower to 2022 mainly due to higher prices, narrow palm price discount to soft oil and on sporadic demand change. CPO futures rebounded to hit all time high in the second half testing RM5123/ton or up 130 points on the most active month contract but pared most gains closing at RM5034/ton or plus 41.