FX.co ★ Palm Oil Prices Steady After December Data

Malaysian palm oil futures held steady on Monday, lingering near MYR 4,040 per tonne after witnessing slight gains in the previous session. Recent data from the Malaysian Palm Oil Board revealed a 7.6% rise in stockpiles, reaching 3.05 million tons by the end of December—levels not seen in seven years. This increase in inventory occurred despite a 5.5% decline in production, falling to 1.83 million tons from November's figures, yet still representing the highest December output in eight years. Export activities helped buoy the market, with a notable 8.5% increase in shipments to 1.32 million tons. Meanwhile, the situation was tempered by a stronger ringgit and a slump in edible oil prices on the Dalian exchange, which contrasted with strength observed in competing oils in Chicago. Moving forward, traders are exercising caution in anticipation of significant Chinese economic data releases this week, including December trade figures and Q4 GDP information. In India, the largest consumer, palm oil imports are projected to recover in January after sliding to an eight-month low in December due to decreased winter demand and increased use of alternative oils.