Malaysia’s palm oil stocks at the end of February fell to their lowest level in seven months

Malaysia’s palm oil stocks in late February fell to their lowest level in seven months as production hit a 10-month low, offsetting a slowdown in exports, the industry regulator said Monday.

The decline in stocks in Malaysia, the world’s second-largest palm oil producer after Indonesia, will help support benchmark futures, which have lost 10 percent in 2023.

Malaysia’s palm oil stocks at the end of February fell 5% from the previous month to 1.92 million tons, the lowest level since July 2023, data from industry regulator Malaysian Palm Oil Board (MPOB) showed.

Crude palm oil production fell 10.18% from January to 1.26 million tons, the lowest level since April 2023, while palm oil exports fell 24.75% to 1.02 million tons, MPOB said.

A Reuters survey forecast February stocks at 1.91 million tons, down 5.7% from the previous month, with production at 1.32 million tons and exports at 1.14 million tons.

Tags: stocks, Malaysia