KUALA LUMPUR (Sept 10): 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 since February.
Production came at the higher end of estimates due to favourable 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 are trading near record highs hit in mid-August.
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|
*indicates revised figures by the Malaysian Palm Oil Board