In late February, palm oil stocks in Malaysia hit 10-month low as exports surge: Reuters poll
Stocks are expected to fall 11.4% from the previous month to 1.38 million tonnes, the lowest since March 2021, according to the median estimate of nine planters, traders and analysts polled by Reuters.
This compares to 1.3 million tonnes recorded a year ago.
Production in the world’s second largest producer is expected to fall 5% to 1.19 million tonnes, also to its lowest level in 10 months.
Exports are expected to rise by 8% to 1.25 million tonnes as buyers turn to Malaysia after the main Indonesian producer imposed on exporters to sell some of their produce domestically.
“There is growing concern about adequate palm supply levels for post-Ramadan replenishment, with more subscriptions in the cheaper months ahead – primarily in the July-September period,” said said Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala. Lumpur.
Benchmark crude palm oil futures hit record highs of more than 7,000 ringgit ($1,673.44) a tonne as Russia’s invasion of Ukraine disrupts oil supplies. sunflower oil from the key Black Sea region, further compressing an already tight global market.
Analysts said prices could stay high for longer than expected.
“Current prices appear sustainable given the current global tension over edible oils, with no short-term supply of Black Sea sunflower oil and limited supply of palm products in Southeast Asia,” Cultrera said. .
However, the biggest importers, China and India, are buying on a daily basis, as palm has become the most expensive of the four main edible oils.
India is expected to import 450,000-500,000 tonnes of palm oil per month from the usual 600,000-700,000 tonnes due to high prices, the chairman of India’s Vegetable Oil Producers Association said on Thursday, Sudhakar Desai, during a UOB Kay Hian conference.
The Malaysian Palm Oil Board will release official data on March 10.
Breakdown of February estimates (in tons):
Production 1,152,000-1,303,580 1,190,000
Exports 1,000,000-1,400,000 1,250,614
Imports 0-150,000 120,000
Closing inventory 1,248,682-1,537,400 1,375,380
* Official stocks of 1,552,414 tonnes in January, plus production and imports estimated above, give a total supply in February of 2,862,414 tonnes. Based on the median of exports and estimated ending stocks, Malaysia’s domestic consumption in February is estimated at 236,420 tonnes.
($1 = RM4.1830)
(Reporting by Mei Mei Chu; Editing by Martin Petty)
By Mei Mei Chu