Malaysia's Palm Oil Stocks at 22-Month Low: MPOB

12-Mar-2025 11:59 AM

Malaysia's Palm Oil Stocks at 22-Month Low: MPOB  
- Palm oil stocks in Malaysia fell 4.31% in February, reaching 1.51 million metric tons, the lowest level since April 2023.  
- Crude palm oil production declined 4.16% to 1.19 million tons, marking a three-year low due to flood-related disruptions.  
- Palm oil exports plummeted 16.27% to 1 million tons, the lowest in four years.  
★ As the world’s second-largest palm oil producer, Malaysia's declining stock levels are expected to support benchmark futures prices. However, higher palm oil prices compared to soybean oil could affect demand from price-sensitive countries.  
★ Meanwhile, Indonesia's stable production and biodiesel expansion program could drive cooking oil prices higher in the coming years. This may make traditionally affordable palm oil more expensive, reducing its price advantage over competing vegetable oils.  
★ In India, edible oil imports are also witnessing a steady decline, while mustard production is expected to be impacted this year. Given these factors, oilseed and edible oil prices are likely to increase in the near future.