InfoSAWIT, KUALA LUMPUR – Palm oil stock in Malaysia in August 2024 got increased to the highest level in the past six months as the monthly production got escalated to the highest level in the past nine years when the exports got slow down. The increasing stock could have something to do with crude palm oil (CPO) price that almost reached the lowest price in the past seven months.
Malaysian Palm Oil Board (MPOB) thought, palm oil stock by the late of August 2024 got increased 7,34% from the previous month that reached 1,88 million metric ton, and the highest level since February.
Besides, CPO production in August got increased 2,87% to July that reached 1,89 million tons. The numbers would the highest production since October 2015. In the increasing production, palm oil exports from the country got decreased 9,74%, to be 1,53 million tons.
A survey by Reuters predicted that palm oil stock in Malaysia would be reaching 1,86 million tons with the production about 1,89 million tons and exports about 1,5 million tons. Even though the stocks got increased, the numbers would be the same as the market prediction and did not significantly show the increasing one to last year.
Anilkumar Bagani, Chief Research of Sunvin Group in Mumbai said that the data from MPOB would be neutral for palm oil trade. “The increasing stock is in the prediction that still can be anticipated and the numbers were less than those in last year,” he said, as InfoSAWIT quoted from theedgemalaysia.com, Tuesday (17/9/2024).
But some traders predicted palm oil production in September 2024 would remain high still. On the other hand, there is no sign to get increasing demands from the main palm oil importers, such as, India and China. This could have something to do with CPO price in the future.
The independent inspection company, AmSpec Agri Malaysia predicted, palm oil exports from Malaysia on 1 - 10 September got decreased 5,2%, to be 412.771 tons. This showed the slow exports still happened in September.
The markets closely monitored biodiesel mandatory program in Indonesia and the possibility to export duty structure. These would have something to do with palm oil price for the next months. Indonesia, as the biggest palm oil producer in the world, planned to get export levy tariff cheaper to increase its palm oil competition to other vegetable oils and increase the smallholders’ income. (T2)
