InfoSAWIT, KUALA LUMPUR – Malaysian Palm Oil Bard (MPOB) on Tuesday (10/10/2023) reported that palm oil stocks in the country increased to its highest level in the past eleven months by September 2023. This is a concern to palm oil demands.

The stock increased 9,6% to August 2023 stock to be 2,31 million metric tons. This increased for five months in a row in Malaysia as the second biggest palm oil producer in the world.

Crude palm oil (CPO) stock increased 4,33% to be 1,83 million tons in September. The exports decreased to be 1,2 million tons.

Survey by Reuters predicted that the stock could be 2,38 million tons or increased 12,05% in the period; the production could be 1,86 million tons while the exports could be 1,32 million tons.

Traders in Mumbai mentioned the stock also increased just like the markets expected. The stock in Malaysia could be increasing to be 2,5 million tons by the late of December.

“Palm oil is difficult to get more expensive because other vegetable oils are available in competitive price,” unnamed traders mentioned.

India and China – two biggest palm oil importers could decrease their demands for the next several months because their stock also increases.

Data in MPOB showed that palm oil consumption in the country increased almost twice month on month to be 494.000 tons in September, as Anilkumar Bagani, Research Chief in Sunvin Group, vegetable trader in Mumbai, said.

The increasing stock could be a loss for palm oil globally though it is predicted that the production would be decreasing because of El Nino phenomenon. El Nino that makes hot weather and drought could be the reason to get palm oil more expensive. (T2)