Malaysian palm oil stock increases due to increased production and decreased exports

10-Sep-2024 03:57 PM

Kuala Lumpur. The peak season of crude palm oil (CPO) production is still going on in Malaysia. According to the latest monthly report of the government body - Malaysian Palm Oil Board (Ampob), the domestic production of CPO increased to 18,93,859 tonnes in August, which was 2.87 percent more than the production of July.

According to the report, at the end of August, a total surplus stock of 18,83,214 tonnes of palm oil was available in Malaysia, which was 7.34 percent more than the safe stock at the end of July.

Under this, the stock of crude palm oil increased by 2.48 percent to 9,53,145 tonnes in August as compared to July and the stock of processed (refined) palm oil jumped by 12.8 percent to 9,30,069 tonnes.

It is worth noting that after Indonesia, Malaysia is the second largest producer and exporter of palm oil in the world. India had huge imports of palm oil during July, hence it declined a bit in August.

In Malaysia, the stock of palm kernel oil also increased by 12.87 percent to 3,74,917 tonnes during August as compared to July. Its export performance remained somewhat weak.

According to the report of Ampob, the total export of palm oil products from Malaysia during the month of August declined to 15,25,115 tonnes, which was 9.74 percent less than the total shipment of July.

Similarly, the import of palm oil there also declined by 0.9 percent to 9970 tonnes. Due to weak exports and high stocks as well as the continuation of the peak production season, the pressure on the benchmark futures price of Malaysian palm oil may increase somewhat.