12/10/2009 (Bernama), Kuala Lumpur - Malaysia's palm oil stock in September rose by 11.47 per cent to 1.578 million tonnes from the 1.415 million tonnes in August, the Malaysian Palm Oil Board (MPOB) said in its monthly report Monday.

Crude palm oil (CPO) stock at the end of September also jumped by 29.02 per cent to 883,827 tonnes against the 685,051 tonnes as the end of August.

"The stock figure is slightly higher than what was expected by the market and it could impact prices," said a broker.

The trend going forward could be similar as demand from India, is expected to slow down with Deepavali this weekend, he added.

"The festive seasons are coming to end and subsequently, demand will taper off. Even the export to China is slowing down," he highlighted.

The CPO production in September increased by 4.12 per cent to 1.556 million tonnes when compared with the 1.495 million tonnes in August, said the MPOB.

It said the export of palm oil fell 0.38 per cent to 1.312 million tonnes in September. The export in August totaled 1.317 million tonnes, it said.