Malaysia's palm oil stocks fall on lower production, rising exports

Malaysia's October 2024 final palm oil inventory data is likely to show a decline in stockpiles after three months of growth, Reuters reports, citing its own survey. The reasons cited include a drop in production and an increase in export shipments. According to the median estimate of 10 traders, plantation owners and analysts surveyed by Reuters, palm oil stockpiles are expected to fall to 1.92 million tonnes, down 4.64 percent from September. Palm oil production is also expected to fall to 1.76 million tonnes, down 3.2 percent from the previous month. “Stocks are expected to fall slightly from their September peak, driven by a combination of rising exports and seasonal production weakness,” said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova. Lim added that the palm oil harvest in recent months has been strong, so the expected slight decline in output is understandable. Malaysia is the world’s second-largest palm oil producer, behind only Indonesia. ...