Malaysia: Palm oil demand surges as prices fall relative to competing vegetable oils

Published 2023년 8월 18일

Tridge summary

In July 2023, Malaysia's palm oil inventories reached a five-month high, but fell short of expectations, as production increased and exports were faster than anticipated. Stockpiles rose by 0.68%, reaching 1.73 million tonnes, slightly below the 1.79 million tonnes predicted by a Reuters survey. The higher price of palm oil compared to competing oils and the lack of supply from the Black Sea region led to increased demand, particularly from India, China, Bangladesh, and Pakistan for August and September orders. However, increased exports are expected to gradually reduce inventories and decrease the discount rate of palm oil relative to other oils.

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Original content

Malaysia's palm oil inventories at the end of July 2023 rose to a five-month high as production increased, but fell short of expectations due to faster exports. Stockpiles at the world's second-largest producer rose 0.68% in July 2023 from the previous month to 1.73 million tonnes, up from the previous month, the Malaysian Palm Oil Board (MPOB) said. third in a row. A Reuters survey in early August 2023 pegged inventories at 1.79 million tonnes, up 4.2 percent from the previous month. MPOB data showed that Malaysia's crude palm oil production rose 11.21% to 1.61 million tonnes, the highest level since December 2022. Exports increased 15.55% to 1.35 million tons, more than expected. Anilkumar Bagani, head of research at Mumbai-based consulting firm Sunvin Group, said output is trending up seasonally, while export demand could recover by August 2023. due to the lack of supply of sunflower oil from the Black Sea. Bagani added that the higher price of palm oil compared to ...

Source: Vinanet