New Straits Times (14/11/2019) - KUALA LUMPUR: Malaysia's palm oil exports for this year is set to tip last year's RM65.41 billion, as oil palm planters are hopeful that the recent rally in palm oil prices would sustain its momentum in the next few months.

"It's heartening to see palm oil prices rising from RM2,200 per tonne to RM2,600 since the middle of October," said Malaysian Palm Oil Association (MPOA) chief executive Datuk Nageeb Wahab.

"Our members are hopeful of the price rally maintaining its momentum as global demand for palm oil is picking up," he told the New Straits Times in a telephone interview today.

According to Malaysian Palm Oil Board's (MPOB) data, 2018's palm oil exports amounted to RM65.41 billion. In the first 10 months of this year, palm oil shipment to more than 150 countries totalled RM53.23 billion.

When asked to forecast this year's palm oil exports, Nageeb replied, "in view of the jump in prices, we're now more optimistic of palm oil exports surpassing last year's RM65.4 billion."

Analysts also acknowledged the positive development in the export market.

Maybank Kim Eng Research senior analyst Ong Chee Ting, in his notes to investors, stated "MPOB’s October stockpile unexpectedly declined to 2.35 million tonnes on lower-than-expected production and better-than-expected exports.

"This was reflected in the palm oil futures rally where spot and third month futures jumped 17 per cent and 18 per cent, respectively, over the past month," he added.

Today, the third month benchmark palm oil futures on Bursa Malaysia Derivatives Exchange opened at RM2,571 per tonne.

Public Investment Bank analyst Chong Hoe Leong believes palm oil prices are likely to surpass RM2,800 per tonne in coming months due to the tightening palm oil supplies in the global markets.

"Since our upgrade on the plantation sector outlook to 'overweight' in early-October, palm oil futures have rallied by more than 20 per cent," he said in his notes to investors earlier this week.

"This should be a boon to all plantation companies after suffering from the poor palm oil price performance over the last two years," he added.

Read more at https://www.nst.com.my/business/2019/11/538407/malaysias-2019s-palm-oil-exports-may-tip-2018s-rm65b