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High stocks, low prices clog palm oil supply chain in Southeast Asia


  • Palm Oil
  • Saturday, 15 Dec 2018

Malaysian stocks rose to 3 million tonnes in November, the highest in at least 18 years, while Indonesian stocks totalled more than 4.4 million tonnes in October, having peaked at close to 5 million tonnes in July.  Two Malaysian-based planters told Reuters they delayed harvesting in their Indonesian estates as storage tanks were full.

Malaysian stocks rose to 3 million tonnes in November, the highest in at least 18 years, while Indonesian stocks totalled more than 4.4 million tonnes in October, having peaked at close to 5 million tonnes in July. Two Malaysian-based planters told Reuters they delayed harvesting in their Indonesian estates as storage tanks were full.

KUALA LUMPUR: Palm oil suppliers across Southeast Asia are struggling to cope with record output, with plantations delaying harvest and mills stalling on deliveries as storage tanks overflow, multiple industry sources said.

Inventories of the edible oil, used to make consumer goods like shampoo, ice cream and cosmetics, usually peak between the third and fourth quarters of the year as seasonal production peaks, but slower demand this year has accelerated stockpile growth and driven prices to multi-year lows.

Palm Oil , Plantations

   

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