PETALING JAYA: Malaysia’s palm oil stockpile in April likely inched lower despite production rising to a six-month high, hampered by robust exports and plummeting imports, a Reuters survey showed yesterday.
Inventories were seen declining 0.27% from the month before to 1.44 million tonnes, according to the median estimate of seven planters, traders and analysts polled by Reuters.
Output in the world’s second-largest producer likely jumped 8.9% from March to 1.55 million tonnes, marking a second straight month of gain and hitting its highest since October.
“The Malaysian Palm Oil Board’s April data should be interesting as supply rebounds with East Malaysia now moving into a stronger production trend, ” said Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
Exports likely rose 10% to 1.3 million tonnes, while imports were seen down 21.4% to 108,000 tonnes.
“Demand in May is likely to be impacted by lower consumption of edible oils in India and negative palm oil processing margins, ” Cultrera said.
Infections in India, the world’s biggest palm oil importer, have surged past 20 million. The board will release the official data on May 10. ─ Reuters