PETALING JAYA: Palm oil exports stabilised in February on a recovery in demand from China while crude palm oil (CPO) production fell for a third month.

According to figures released by the Malaysian Palm Oil Board yesterday, exports of palm oil were down 7.2% to 1.25 million tonnes compared with January, which saw a drop of 16.2%.

Exports of palm kernel oil, however, was up 6.7% to 94,300 tonnes compared with January, which saw a decline of 27.5%.

CPO production fell 10.7% to 1.18 million tonnes while total palm oil stocks, including CPO and processed palm oil, fell 14.7% to 1.56 million tonnes.

Exports of palm oil were up 18% year-on-year while exports for palm kernel oil rose 25.7%.

CPO production fell 3.4% year-on-year while total palm oil stocks were down 19.0%.

HwangDBS Research Sdn Bhd said in a report that although there was a near-term downside to CPO prices due to production recovery, prices were not expected to retest the November low due to a supply deficit in vegetable oils this year.

ECM Libra Investment Research said the stabilising figures in February were due to a recovery in demand from China, where exports had been halved in January due to the Lunar New Year period.