Weekly Product Updates

W15 Palm Oil Update: Global Palm Oil Production at 6.13 mmt for the 2023/24 Season, Imports Decrease Imports in Indonesia, and Future Prices Dropped in Malaysia

RBD Palm Oil
United States
Published Apr 19, 2024
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In W15 in the palm oil landscape, the USDA forecasted the global palm oil production for the 2023/24 season to be 79.64 mmt in the 2023/24 season. In addition, palm oil export in Indonesia decreased by 33.37% YoY and 31.17% MoM to 1.59 mmt in Feb-24. Furthermore, Malaysian palm oil futures dropped over 1% on Friday due to weak soy oil prices caused by oversupply. Lastly, Malaysia's palm oil inventories dropped to an eight-month low of 1.79 mmt at the end of Mar-24 due to increased exports.

USDA Estimated Global Palm Oil Production at 6.13 mmt for the 2023/24 Season

According to the Apr-24 World Agricultural Supply and Demand Estimates from the United States Department of Agriculture (USDA), global palm oil production for the 2023/24 season is estimated to be 79.46 million metric tons (mmt), slightly less than the previous estimate of 79.48 mmt. Additionally, the forecast for global vegetable oil production is 223.17 mmt, higher than 217.88 mmt in the 2022/23 season.

Indonesian Palm Oil Exports Decreased by 33.47% YoY in Feb-24

According to Oil World, Indonesian palm oil exports decreased to 1.59 mmt in Feb-24, compared to 2.31 mmt in Jan-24 and 2.39 mmt in Feb-23. In Jan-23, the country shipped 153 thousand mt of crude palm oil and 1.35 mmt of refined palm oil. However, during the same period, palm kernel oil export registered a significant increase of 55.88% year-on-year (YoY) and 11.19% month-on-month (MoM), reaching 159 thousand metric tons (mt). On the other hand, the export of palm kernel meal witnessed a decline of 40.19% MoM and 39.76% (YoY) to 159 thousand mt.

Malaysian Palm Oil Futures Dropped by 1% on Friday Due to Weak Soy Oil Prices

On April 12, 2024, Malaysian palm oil futures experienced a notable decrease of more than 1% due to a drop in the Chicago soy oil prices. An abundance of supplies and concerns over demand caused the drop in soy oil prices. The palm oil contract for Jun-24 delivery on the Bursa Malaysia Derivatives Exchange has declined by 2% this week after reaching a year high in W14.

Malaysia’s Palm Oil Inventory Hit an Eight-Month Low Due to Increased Export

Malaysia's palm oil inventories decreased by 6.65% MoM to an eight-month low of 1.79 mmt at the end of Mar-24 due to increased exports. In Mar-24, palm oil exports in Malaysia increased by 21% YoY to 1.23 mmt. The rise in exports can be attributed to growing demand during the Muslim holy month of Ramadan.

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