Malaysian palm oil futures traded lower on Wednesday, hovering below MYR 4,100 per tonne after a modest gain in the prior session. Pressure grew after monthly data from the Malaysian Palm Oil Board (MPOB) showed end-November stocks jumped 13.0% from October to 2.84 million tonnes, the highest level in 6-1/2 years and above Reuters’ forecast of 2.66 million tonnes. Weakness in rival soyoil on the Chicago markets also weighed on sentiment, even as reports suggested Argentina may lower export taxes on grains, including soybeans and corn, potentially boosting competition. Still, losses were limited by a weaker ringgit and optimism over seasonal demand ahead of Lunar New Year and Ramadan. The MPOB report also indicated palm oil output fell 5.3% to 1.94 million tonnes in November, while exports slumped 28.1% to 1.21 million tonnes. Meanwhile, fresh data from key buyer China showed consumer inflation hit a 21-month high in November, though producer prices continued their multi-year decline.
