Palm oil prices may rise more on seasonally slowing output

Analysts expect inventory to erode as supplies taper despite sharp demand uptake

20191112 Palm Malaysia

Malaysia, the world's top palm oil producer after Indonesia, reported a 4.1% decline in inventory in October from a month earlier as exports surged. © Reuters

KUALA LUMPUR (Nikkei Markets) -- Palm oil prices may climb further and lift shares of planters amid expectations of seasonally-slower output growth in the months ahead following an unexpected drop in October stockpile.

Tree stress from recent dry spell and disruption to harvest during upcoming monsoon season are also expected to weigh on incoming supply, helping to whittle down inventory at a time when demand from China is likely to fall during winter months, analysts said.

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