Malaysia end-October palm oil stocks to hit 2-year high as output surges

Malaysia’s palm oil inventories are forecast to climb to a two-year high in October, driven by a surge in production to the highest level in seven years, outpacing export demand. Palm oil stocks are expected to surge 3.5% in October to 2.44 million metric tons, their highest since October 2023, according to the median estimate of ten traders, planters, and analysts polled by Reuters. Crude palm oil output is estimated at 1.94 million metric tons, a 5.6% increase from the previous month, reaching its highest level for the month since October 2018. Production is widely expected to improve primarily from East Malaysia, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. He added that exports have been gaining traction as the recent low prices saw many buyers buying the dip. “Overall, the increase in end stocks will probably cap the gains, making any recovery short-lived. Going forward, focus will shift on the upcoming monsoon season and its impact ...