Malaysia's palm oil stock expected to increase for the second consecutive month in May
05-Jun-2024 02:10 PM
Kuala Lumpur. Although the monthly official data of the government body - Malaysian Palm Oil Board (Ampob) will come out on June 10-11, but before that, the estimates made by the industry and trade sector show that the outstanding surplus stock of palm oil in Malaysia has also increased in May after April. Apart from this, the outstanding stock of palm oil in Malaysia is expected to increase slightly to 17.50 lakh tonnes by the end of May 2024.
According to industry and trade analysts, during the month of May, the production of crude palm oil (CPO) in Malaysia increased to around 16.50 lakh tonnes, which is about 10 percent more than in April.
Similarly, during the period under review, the export of palm oil products is also expected to increase by 14.32 percent to 14.10 lakh tonnes.
After Indonesia, Malaysia is the second largest producer and exporter of palm oil in the world. Although the export performance of May was better, the outstanding stock increased somewhat due to good increase in production. There was some increase in it in April as well.
It is worth mentioning that in its previous report, Ampob had estimated that there would be an outstanding stock of 17.40 lakh tonnes of palm oil in Malaysia at the end of April, which was 1.85 percent more than the surplus stock of March.
During May, the price of palm oil was competitive compared to other rival oils as compared to April, due to which Malaysia got good success in increasing its export.
The process of increase in the production of Malaysian palm oil started from March itself, which continued in May as well and is likely to continue for the next few months.
In such a situation, it is necessary to keep the level of export high otherwise the outstanding stock may also increase and pressure may increase on the benchmark futures price of palm oil (CPO). In May, there has been a better export of palm oil from Malaysia to some other countries including India and China.