InfoSAWIT, KUALA LUMPUR – Palm oil stock in Malaysia increased up to more than 2 million tons, the highest numbers in the past two years because of the increasing production and decreasing exports in the country.

Malaysian Palm Oil Board (MPOB) reported that in August 2023, palm oil stock increased 23% compared to the previous month to be 2,12 million tons. It was the biggest increasing production since August 2021 and the highest since January.

The numbers surpassed the survey stock that Bloomberg predicted that reached 1,90 million tons.

Head of Research of Sunvin Group in Mumbai, Anilkumar Bagani said that the increasing stock was a surprise and clearly delivered negative impacts to palm oil (sector) because the final stock increased in ‘shock’ numbers to July. “Because the exports decreased and domestic consumption did too, 27% to be about 251,000 tons,” he said, as quoted from Bloomberg.

Crude palm oil (CPO) production increased 8,9% to the highest level in the past ten months to be 1,75 million tons compared to what Bloomberg surveyed that reached 1,73 million tons. MPOB report showed that palm oil production in Malaysia increased for the second month in August after increasing 11,2% in July. (T2)