Malaysia end-Jan palm oil stocks rise as strong imports offset output loss
10 Feb 2023 (www.channelnewsasia.com) KUALA LUMPUR : Malaysia's palm oil inventories at the end of January rose for the first time in three months, as a surge in imports helped cushion a fall in production and exports, data from the nation's palm oil board showed on Friday.
Stockpiles in the world's second-largest producer expanded 3.26 per cent from the previous month to 2.27 million tonnes, according to the Malaysian Palm Oil Board (MPOB).
Crude palm oil output slumped 14.73 per cent from December to 1.38 million tonnes, the lowest level in 11 months.
This was the third consecutive monthly fall in output, hurt by year-end tropical monsoons and floods that disrupted harvesting activities and supply lines.
Heavy rains have continued to slam parts of Malaysia in February so far, raising concerns of continued supply disruptions even as top producer Indonesia seek to further limit its exports ahead of Islamic holidays.
Meanwhile, exports from Malaysia tumbled nearly 23 per cent to 1.14 million tonnes, the lowest since April, in line with cargo surveyor data showing a decline in shipments to key markets India and China.
Imports swelled more than two times to 144,937 tonnes.
In February, Malaysia's exports are expected to show a sound recovery due to tightness in Indonesian export availability, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
But uncertainties about Indonesia's export rules, as Jakarta reviews its exports quota ratio, will keep markets very volatile, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.
Following is a breakdown of the MPOB figures and Reuters estimates for January (volumes in tonnes) [PALM/POLL]:
Jan 2023 Jan 2023 poll Dec 2022* Jan 2022
Output 1,380,410 1,390,000 1,618,833 1,253,577
Stocks 2,268,198 2,180,301 2,196,574 1,551,151
Exports 1,135,498 1,150,000 1,473,846 1,159,576
Imports 144,937 51,000 64,911 70,596
*indicates revised figures by the Malaysian Palm Oil Board