Inventories fell 6.1 percent to 2.17 million tons in February from a month earlier, the lowest since June, data from the Malaysian Palm Oil Board showed Tuesday. That compares with the 2.11 million tons median estimate in a Bloomberg survey. Crude palm oil production fell 7.7 percent to 1.04 million tons, the lowest level since February 2007. Production in Sabah, Malaysia’s biggest palm-growing state, slumped 21 percent, board data show.

The tropical oil used in everything from candies to cosmetics and biofuel bucked a commodities rout last year as the dry weather wrought by the worst El Nino since 1997-98 parched major palm-growing regions in Southeast Asia. Global palm oil production may shrink by 3 million tons in 2015-16, boosting prices in Kuala Lumpur to above 3,000 ringgit ($729) a ton, according to Dorab Mistry, director at Godrej International Ltd.

«We’ll face constrained supplies in the next three to four months,» Pawan Kumar, director at Rabobank’s Food & Agribusiness Research & Advisory, said by phone from Singapore. «That will drive prices and decide the level of prices which will remain supported until the end of June.»