Malaysia’s palm oil stocks hit eight-month high in May as output jumps
Palm oil stocks in Malaysia jumped to their highest level in eight months in May as a surge in production and imports countered exports, which rose to their highest in six months, according to Malaysian Palm Oil Board (MPOB) data.
May palm oil stocks of 1.99M tonnes were 6.65% up compared to the previous month, the third consecutive monthly increase and the highest level since September 2024, The Star reported.
Crude palm oil (CPO) production increased by 5.05% in May, also the third consecutive monthly rise, to 1.77M tonnes, while palm oil exports surged 25.6% to 1.39M tonnes, the highest total since last November last year, the MPOB said. Imports rose from 58,292 tonnes in April to 68,971 tonnes, the data showed.
The MPOB report was slightly bullish for palm oil, as the market was already trading with the expectation of stocks rising to 2M tonnes, Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group, was quoted as saying.
“Unless production rises with greater force in (the) coming months, we expect demand, particularly from top buyer India, to support the market,” he added.
India halved the basic import tax on crude palm oil to 10% in June in a bid to bring down food prices and boost the domestic refining industry.
In the weeks before the report, palm oil had been trading at a discount to soyabean oil and had started to attract buyers during the peak production season, a Mumbai-based dealer with a global trade house was quoted as saying.
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