KUALA LUMPUR — Malaysian palm oil
inventories in August climbed more than expected to their
highest in over a year, as production recovered strongly and
exports plunged, data released by the nation’s palm oil board
showed on Friday.
Stockpiles rose 25.3% from July to 1.87 million tonnes in
August — the highest since June last year, the Malaysian Palm
Oil Board’s (MPOB) data showed. That surpassed a Reuters poll
pegging a 16% rise.
Output at the world’s second-largest producer expanded 11.8%
to a nine-month high of 1.7 million tonnes.
Exports tumbled 17.1% to 1.16 million tonnes, its lowest
Production came at the higher end of estimates due to
favorable weather, raising prospects of stocks reaching 2
million tonnes by year-end, said Sathia Varqa, co-founder of
Singapore-based Palm Oil Analytics.
“Supply outlook will be seen improving after months of tight
supply sentiments,” he said.
Stockpiles rose in surplus for the first time in 25 months,
and expect stocks to stay remain in surplus from September to
December year-on-year, Varqa added.
That could pressure Malaysia’s benchmark crude palm oil
prices which is trading near record highs hit in
The inventory also rose on lower domestic consumption, down
27%, due to prolonged COVID-19 curbs and higher palm oil
imports, said Anilkumar Bagani, research head of Mumbai-based
vegetable oils broker Sunvin Group.
MPOB data showed imports jumped 68% to 91,408 tonnes.
Following is a breakdown of the Malaysian Palm Oil Board
figures and Reuters estimates for August (volumes in tonnes)
Aug 2021 Aug 2021 poll July 2021* Aug 2020
Output 1,702,430 1,692,960 1,522,703 1,863,309
Stocks 1,874,746 1,739,987.5 1,496,463 1,704,060
Exports 1,162,812 1,235,161 1,402,042 1,582,359
Imports 91,408 50,000 54,381 32,311
*indicates revised figures by the Malaysian Palm Oil Board
(Reporting by Mei Mei Chu; Editing by Clarence Fernandez and