Malaysia’s palm oil stocks rise at record pace amid export slump
Malaysia’s palm oil inventories rose 5.2% in May to 2.43 million tonnes, the fastest increase in five months, as exports dropped 14% amid stronger competition from discounted Indonesia supplies, while crude palm oil production declined 7% to 1.52 million tonnes.
Malaysian palm oil inventories rose at their fastest pace in five months, as a sharp drop in exports led to lower production in the world’s second-largest palm oil-producing country, Business Today reports.
According to data released Wednesday by the Malaysian Palm Oil Board (MBOP), May inventories rose 5.2% from the previous month to 2.43 million tonnes.
The increase was more than double the 2.2% expected in a Bloomberg survey. The buildup reflects a sharp slowdown in overseas shipments, as buyers scrambled to purchase Indonesian shipments at discounted prices following Jakarta’s revision of its export policy for key commodities.
Malaysia’s exports fell by approximately 14% to a year-over-year low of 1.11 million tonnes, compared to the forecast of a 6.2% decline. While Indonesia’s new regime, announced late last month, was initially expected to redirect demand to Malaysia, this has not yet materialized. Instead, buyers in key markets, including India and China, are actively snapping up Indonesian products at more attractive prices.
Analysts note that competition between the two neighboring countries could intensify in the coming months as Indonesian exporters rush to deliver before the full implementation of the state control system.
According to MPOB, Malaysia’s crude palm oil production fell by 7% to 1.52 million tonnes, compared to the forecast of a 4.9% decline.
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Source : Ukr Agro Consult
