Palm oil: Malaysia’s stocks rise as exports plummet

Malaysia’s palm oil stocks rebounded at the end of October due to a slump in exports amid falling production.

Palm oil stocks of the world’s second largest producer are set to rise 3.4 percent to 1.81 million tonnes.

Production is seen falling 0.98% to 1.69 million tonnes. It is likely to fall for the second consecutive month to a three-month low as the peak production season comes to an end.

The decline, which is much lower than historical trends, reflects the ongoing severe shortage of foreign workers, ageing trees due to slow replanting, slowing rates of new plantings and lower fertiliser inputs due to logistical problems.

Exports slumped 11.7 percent to 1.41 million tonnes, as data from cargo inspectors showed a slowdown in shipments to major buyers, India and the European Union.

Suspicion fell on high prices and low supply from Malaysia. Malaysia’s benchmark crude palm oil prices hit an all-time high of €1136/mt in October due to a supply shortage in global edible oils.