Malaysia’s palm oil stocks hit a six-year high as exports slump
Malaysia’s palm oil stocks hit a six-year high of 2.7 million tonnes in November, up 47% year-on-year, amid weaker exports and falling demand. Production slipped 2.9% to 2 million tonnes. High inventories since March are pressuring prices, with futures briefly below RM4,000/tonne. Official data expected December 10.
Malaysia’s palm oil inventories have surged, reaching their highest level in more than six years amid weakening external demand in November. A survey of plantation companies, traders, and analysts found that stocks jumped 10% month-on-month to 2.7 million tonnes, also 47% higher than a year ago.
High stockpiles have been accumulating since March, putting additional pressure on prices. In November, futures temporarily fell below RM4,000 per tonne as India, a key buyer, reduced imports after the festive period ended. Overall, Malaysia’s exports fell by approximately 15% to 1.4 million tonnes, following a sharp jump of almost 19% the previous month.
Meanwhile, crude palm oil production fell by 2.9% to 2 million tonnes after a significant increase in October. Experts note that the peak season is now behind us, and the country is entering a period of lower production, while demand remains weak.
The market is awaiting the release of official statistics on December 10. According to broker Paramalingam Supramaniam, figures above 2.6 million tonnes could be perceived as bearish and put pressure on prices.
According to the survey, reserve estimates ranged from 2.7 to 2.8 million tons, while production estimates ranged from 1.9 to 2.1 million tons. Export forecasts were 1.3 to 1.5 million tons, while imports were around 40,000 tons. Domestic consumption was estimated at 270,000 to 490,000 tons.
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Source : Ukr Agro Consult
