Malaysia’s end-October palm oil stocks fall on lower output, higher exports
Malaysia’s palm oil inventories are expected to decrease by 4.64% in October, reaching 1.92 million metric tons, following a 3.2% drop in crude palm oil output to 1.76 million metric tons. This decline is attributed to lower production and higher exports, with palm oil exports forecast to increase by 5.64% to 1.63 million metric tons. Despite the reduced output, preliminary export data suggests a strong recovery as importers restock in anticipation of rising prices. The Malaysian Palm Oil Board will release official data on November 11.
KUALA LUMPUR, Nov 5 (Reuters) – Malaysia’s palm oil inventories are forecast to fall in October, marking their first decline in three months, due to lower output and higher exports, a Reuters survey showed on Tuesday.
Palm oil stocks are expected to drop to 1.92 million metric tons, down 4.64% from September, according to a median estimate of ten traders, planters, and analysts polled by Reuters.
Crude palm oil output is expected at 1.76 million metric tons, a 3.2% decline from the previous month.
“Stockpiles are projected to ease slightly from their September high, driven by a combination of increased exports and a seasonal slowdown in production,” said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova.
Lim said crude palm oil production in the world’s second-biggest exporter of the edible oil was poised for a modest dip following the peak harvest surge experienced in the preceding months.
“On a brighter note, preliminary data from cargo surveyors for October already hints at a robust uptick in shipments, showcasing the resilience of the market and importers restocking inventories in anticipation of higher prices amid lower production,” he said.
Exports of palm oil products are forecast to increase by 5.64% to 1.63 million metric tons, a second straight monthly rise.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on Nov. 11.The video player is currently playing an ad.00:02Stocks jump on Election Day as investors eye outcome
Breakdown of October estimates (in metric tons):
| Range | Median | |
| Production | 1,657,959 – 1,850,000 | 1,763,638 |
| Exports | 1,600,000 – 1,727,942 | 1,629,973 |
| Imports | 9,000 – 50,000 | 10,000 |
| Closing Stocks | 1,732,854 – 2,170,000 | 1,920,443 |
* Official stocks of 2,013,837 tons in September plus the above estimated output and imports yield a total October supply of 3,787,475 tons. Based on the median of exports and closing stocks estimate, Malaysia’s domestic consumption in October is estimated to be 237,059 tons.
Source Link : https://www.reuters.com/markets/commodities/malaysias-end-october-palm-oil-stocks-fall-lower-output-higher-exports-2024-11-05/
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