Breaking News-RTRS-Malaysian palm oil stocks to stay low - Oil World

HAMBURG, Feb 17 (Reuters) - Palm oil stocks in key exporter Malaysia are likely to remain below last year's levels for most of 2009, oilseeds analysts Oil World forecast on Tuesday.
But the higher palm oil prices generated by lower stocks could mean buyers seek alternative edible oils, it added.
"We expect Malaysian palm oil stocks to remain below last year's level at least until September, but probably until December 2009," it said. "Malaysian production is likely to be curbed in calendar year 2009 by reduced yields."
Palm oil prices have risen relative to other vegetable oils recently because of strong export demand partly due to the sharp decline in export supplies of soyoil, it said.
"As a result, Malaysian palm oil stocks showed an unprecedented decline of 0.43 million tonnes from Dec 1 until end Jan 2009 to 1.8 million tonnes," it said.