Malaysia end-Aug palm oil stocks hit 2 million T for first time in 2 years

By Mei Mei Chu

KUALA LUMPUR (Reuters) – Malaysia’s palm oil inventories at end-August seemingly swelled above 2 million tonnes for the primary time in additional than two years, lifted by a bounce in manufacturing, a Reuters survey confirmed on Monday.

Stockpiles jumped 14.5% from the month earlier than to 2.03 million tonnes, the very best since April 2020, in accordance with the median estimate of 9 merchants and analysts polled by Reuters.

Output on the planet’s second largest producer climbed 8% to 1.7 million tonnes, hitting a 10-month peak.

August, the beginning of the height manufacturing season, is heading in the right direction to be the very best manufacturing month, buoyed by rains providing ample soil moisture and boosting yields, stated Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

“September manufacturing rise will see a slowdown as yields take time to recuperate,” he added.

In the meantime, exports eased 0.14% to 1.32 million tonnes amid rising worth competitors with bigger rival Indonesia.

Estimates by cargo surveyors ranged from a decline of three% to a 1.6% rise, as shipments to China and the European Union rose however key purchaser India slowed purchases.

The rising inventories have been mirrored within the worth development in August, stated William Simadiputra, analyst at DBS Vickers Securities in Jakarta.

Malaysia’s benchmark crude palm oil contract fell 3.4% in August, its fourth consecutive month-to-month decline.

The Malaysian Palm Oil Board (MPOB) is scheduled to launch its information on Sept. 12.

Breakdown of August estimates (in tonnes):

Vary Median

Manufacturing 1,650,000-1,809,594 1,699,445

Exports 1,229,700-1,400,000 1,320,000

Imports 0-260,000 150,000

Closing shares 1,850,000-2,132,388 2,030,000

* Official shares of 1,772,794 tonnes in July plus the above estimated output and imports yield a complete August provide of three,622,239 tonnes. Based mostly on the median of exports and shutting shares estimate, Malaysia’s home consumption in August is estimated to be 272,239 tonnes.

(Reporting by Mei Mei Chu; Enhancing by Martin Petty)