PME exports from Malaysia in November totalled 13,568 mt, the bulk of which was a single cargo sold to a European buyer a couple of months ago when an arbitrage was open, Malaysian Palm Oil Board data showed Wednesday.
October PME exports had totalled only 77 mt as cargoes from an arbitrage opportunity earlier in the year had been shipped out before then.
PME cargoes tend to trade in a flurry when an arbitrage opportunity arises between Malaysia and Europe.
However, on the palm oil front, conditions looked challenging as November palm oil exports fell 4.2% month on month to 1.37 million mt, MPOB data showed.
The reduction in palm oil exports had been expected since figures from both inspection companies ITS and SGS during November showed reduced cargoes going into Bangladesh and India -- two major markets for palm oil.
MPOB data showed exports to Bangladesh fell to 8,050 mt in November from 19,715 mt in October, while Indian imports almost halved to 131,368 mt from 203,898 mt.
Indian palm oil imports have been dealt a blow by the recent demonetisation of the Indian currency which has caused postponement of palm shipments and vessel arrests due to non-payment issues, market sources said.
The data also showed CPO production has fallen further in December by 6.1% to 1.58 million mt from November, both due to seasonal low production as well as tree stress caused by the El Nino.
CPO futures prices on Bursa Malaysia have been rising in recent days due to the reduction in palm oil production.
However, Malaysian palm oil stocks rose by 5.2% month on month during November to 1.66 million mt despite low production due to the loss of demand.
