Malaysia end-April palm oil stocks shrink to 11-month low on plunging output
10.05.2023 (The Star) - KUALA LUMPUR: Malaysia's end-April palm oil inventories slumped to their lowest in 11 months, after production and exports plunged more than anticipated, data from the nation's palm oil board showed on Wednesday.
Stockpiles in the world's second-largest producer shrank 10.54% from March to 1.5 million tonnes, down for a third month to the lowest since May 2022, according to the Malaysian Palm Oil Board (MPOB).
Inventories were also lower than 1.64 million tonnes recorded in April 2022, the first annual decline this year, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Crude palm oil production in April declined 7.13% to 1.2 million tonnes, its lowest since February 2022 due to fewer harvesting days amid the Eid al-Fitr holiday season.
Palm oil exports were down 27.78% to 1.07 million tonnes, more than cargo surveyors estimates of 18-21%. Imports plunged 15.3%.
MPOB data was neutral to bullish, Bagani said, but traders will have to consider external factors including uncertainties surrounding the Black Sea grain corridor to determine the future course of price action.
A failure to extend the Black Sea deal between Russia and Ukraine could disrupt sunflower oil supplies, he said.
Following is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates (volumes in tonnes): - Reuters
