Malaysia’s palm oil inventories are expected to inch higher for a second consecutive month in May, according to a Reuters survey. The increase is underpinned by higher output despite a recovery in exports.
The survey of 10 traders, planters, and analysts shows that palm oil stocks in the world’s second-biggest producer were seen at 1.75 million metric tons, up 0.39% from April. Official data for April showed Malaysia’s palm oil stocks rose 1.85% from the previous month to 1.74 million metric tons.
Exports of palm oil products were estimated to have jumped by 14.32% in the same period to 1.41 million tons, due to the recovery in palm’s competitive price to soybean oil in May.
Meanwhile, crude palm oil (CPO) output was seen rising for the third consecutive month to 1.65 million tons, a 9.9% increase month-on-month. Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics, attributed this to “beneficial rainfall, relatively higher labor productivity compared to last year, and extended strong yield growth from April.”
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on June 10, which will provide the official figures for May.