PALMOILMAGAZINE, KUALA LUMPUR – Malaysia’s palm oil stock in August 2024 surged to its highest level in six months, with monthly production reaching a nine-year peak as exports slowed. The stock buildup may be tied to crude palm oil (CPO) prices, which neared their lowest level in seven months.
According to the Malaysian Palm Oil Board (MPOB), palm oil stock at the end of August increased by 7.34% from the previous month, reaching 1.88 million metric tons, the highest since February. CPO production also rose by 2.87% compared to July, hitting 1.89 million tons—the highest production since October 2015. However, palm oil exports from Malaysia dropped by 9.74%, totaling 1.53 million tons.
A Reuters survey predicted that Malaysia’s palm oil stock would reach 1.86 million tons, with production at around 1.89 million tons and exports at 1.5 million tons. Despite the rise in stock, the figures aligned with market expectations and showed no significant year-on-year increase.
Also Read:
Anilkumar Bagani, Chief Research Officer Officer of Sunvin Group in Mumbai, said that the data from MPOB would be neutral for the palm oil trade. “The increasing stock is in the prediction that still can be anticipated and the numbers were less than those in last year,” he said, as Palmoilmagazine.com quoted from theedgemalaysia.com, Tuesday (17/9/2024).
But some traders predicted palm oil production in September 2024 would remain high still. On the other hand, there is no sign to get increasing demands from the main palm oil importers, such as, India and China. This could have something to do with CPO price in the future.
The independent inspection company, AmSpec Agri Malaysia predicted, palm oil exports from Malaysia on 1 – 10 September got decreased 5,2%, to be 412.771 tons. This showed the slow exports still happened in September.
The markets closely monitored biodiesel mandatory program in Indonesia and the possibility to export duty structure. These would have something to do with palm oil price for the next months. Indonesia, as the biggest palm oil producer in the world, planned to get export levy tariff cheaper to increase its palm oil competition to other vegetable oils and increase the smallholders’ income. (P2)
