Malaysia's palm oil production increased by 11.50 lakh tonnes till September

15-Oct-2024 06:10 PM

Kuala Lumpur. In Malaysia, palm oil production has been reaching its peak in October for the last three years, but this time it reached its peak two months earlier, i.e. in August itself. As a result, palm oil production there declined by 3.8 percent to 18.20 lakh tonnes during September as compared to August.

It is expected that the trend of decline in palm oil production will continue in the October-December 2024 quarter as well. Despite the decline in production, exports of palm oil products increased by 0.9 percent to 15.40 lakh tonnes, which was 27 percent more than the shipment of September 2023.

During the first nine months of the current year i.e. January-September 2024, palm oil production in Malaysia increased by 11.50 lakh tonnes or 8.7 per cent as compared to the same period last year and exports of Malaysian palm oil products also registered a huge increase of 14.10 lakh tonnes or about 13 per cent. Thus, palm oil exports increased by 2.6 lakh tonnes compared to production.

At the end of September 2024, the outstanding surplus stock of palm oil products in Malaysia was recorded at 20.10 lakh tonnes, which was slightly lower than September 2023. Malaysian palm oil prices are getting better support due to strong export performance and early end of peak production season.

During the current month (October), the futures price of crude palm oil rose to a high of 4400 ringgit per tonne.

The Malaysian Palm Oil Council believes that the price of crude palm oil can remain above 4000 ringgit per tonne during the current month.

The stock of palm oil is decreasing in India while preparations are also going on for the 40 program in Indonesia. This is expected to give strong support to the palm oil market.