Malaysia’s palm oil stocks could hit a record 3.45 million tons
In Ukraine, UkrAgroConsult reported that Malaysia’s palm oil inventories may have risen 22% m/m in September to 3.45 million tons, according to a Bloomberg survey of market participants. This would mark a new all-time high, surpassing the previous record of 3.22 million tons set in December 2018.
The sharp build-up in stocks was driven by stronger-than-expected production. September output may have increased 16% to 2.11 million tons, which would be the highest level ever recorded for the month, according to the report.
At the same time, Malaysia’s palm oil exports are estimated to have fallen by around 12% to 1.13 million tons, a four-month low. The country has recently lost market share due to a wide premium over Indonesian palm oil and high vegetable oil inventories in key importing markets, the report added.
The report also noted that inventories may peak in October before gradually declining as production slows seasonally and exports recover, particularly to India.
Category: Food & Agriculture
