KUALA LUMPUR/MUMBAI, Apr 15 (Reuters): Malaysia's palm oil stocks at the end of March dropped to their lowest in 10 months as a jump in exports offset a rebound in production, the industry regulator said on Monday.
The reduction in stocks in Malaysia, the world's second-largest palm oil producer after Indonesia, would help in supporting benchmark futures, which rose to a one-year high earlier this month.
Malaysia's palm oil stocks at the end of March fell 10.68 per cent from the previous month to 1.71 million metric tons, their lowest since May, data from the industry regulator the Malaysian Palm Oil Board (MPOB) showed.
Crude palm oil (CPO) production gained 10.57 per cent from February to 1.39 million tons, while palm oil exports ticked up 28.61 per cent to 1.32 million tons, the MPOB said.
The MPOB report is bullish for the market, Anilkumar Bagani, research head of vegetable oils broker Sunvin Group said.
"The CPO stocks are depleting fast, and they could fall further by end of April. Malaysian output could drop in the first half of April because of Ramadan holidays, while exports during the period were higher than the last month," he said.
The CPO stocks at the end of March fell to 797,974 tons, the lowest since March 2022, the MPOB data showed.
Malaysia's palm oil stocks fall to 10-month low as exports surge
FE Team | Published: April 15, 2024 22:37:18
Malaysia's palm oil stocks fall to 10-month low as exports surge
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