Malaysia end-Oct palm oil stocks rise to three-year high

Malaysia’s palm oil stocks at the end of October expanded for a fifth month to a three-year high as production improved, data from the nation’s palm oil board showed.

Inventories in the world’s second-largest producer rose 3.74% from the previous month to 2.4 million tonnes, the highest since September 2019, according to the Malaysian Palm Oil Board (MPOB).

However, the figure was slightly lower than a Reuters‘ survey pegging inventories at 2.53 million tonnes.

Crude palm oil production rose for a fifth month amid the peak crop season, climbing 2.44% from September to 1.81 million tonnes.

Exports gained 5.66% to 1.5 million tonnes, the industry regulator said.

Imports fell 49.85%.

Although stocks are higher on a month-on-month and year-on-year basis, the report is slightly bullish in view of palm oil’s extraordinary discount over competing oils and the robust export pace in November so far, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Exports from Malaysia during Nov 1-10 rose 12.7% to 420,477 tonnes from the same period in October, cargo surveyor Amspec Agri said.

Heavy monsoon rains and a high risk of flooding due to La Niña are threatening to impede the harvest in the world’s largest producers Indonesia and Malaysia, which will likely hurt production in November and December.

Following is a breakdown of the MPOB figures and Reuters estimates for October (volumes in tonnes):

* indicates revised figures by the Malaysian Palm Oil Board

Tags: MPOB, Crude palm oil, Production, Malaysia, palm oil, imports, stocks, exports