Malaysia's palm oil stocks fell by 6.1% to 2.17 million mt in February from 2.31 million mt in January, according to data released Thursday by the Malaysian Palm Oil Board.
Year on year, stocks are 24% higher compared with 1.74 mil mt in February 2015.
The MPOB statistics were released a day after a major palm oil conference concluded in Malaysia at which analysts said that palm oil stocks were expected to deplete very fast this year, as production from plantations in Malaysia and Indonesia has been affected by the most serious El Nino weather phenomenon since 1997-1998.
Palm oil exports fell from 1.28 million mt in January to 1.09 million mt during February, a decrease of almost 15%, according to the statistics.
Production of crude palm oil or CPO fell from 1.13 million mt in January to 1.04 million mt in February. This was a 7% decrease from 1.22 million mt produced in February 2015.
Palm methyl ester (PME) exports from Malaysia for February stood at 10,618 mt according to the statistics, a dramatic increase from the 61 mt of PME exported during January.
These PME exports tie in with earlier reports of PME being loaded and shipped out of Port Klang by an Asian trader, bound for Europe. However, the deals for this PME were contracted much earlier.
