Malaysia April Palm Stocks Hit 7-Month Lows

Malaysia’s April palm oil stocks likely dropped 4 per cent to

seven-month lows as combined overseas and local demand outpaced sluggish

output, a Reuters poll showed today.

Inventories in the world’s No. 2 palm oil producer fell for the

fourth straight month to hit 1.59 million tonnes although the pace of

the decline slowed due to higher crude palm oil imports from rival

Indonesia, a Reuters poll of five plantation houses showed.

“Traders want slow production to pick up so that stocks can rise

and refiners can be more aggressive in their production,” one poll

contributor said.

April’s palm oil output fell 7 per cent to 1.3 million tonnes

due to oil palm tree stress that set in after higher seasonal production

in the last quarter of 2009.


Another poll contributor said palm oil is currently recovering from

the low crop season but after effects of El Nino weather pattern has

slowed down output.

“Palm oil production is compounded by low rainfall patterns in

certain states, that’s why the output was at a slight deficit,” said the

contributor.

Hamburg-based oilseeds analysts Oil World estimated global 2010

palm oil production at 46.9 million tonnes, up 1.6 million tonnes on the

year, but lagging sharply behind rises of 2.0 million tonnes in 2009

and 4.4 million tonnes in 2008.

Of the 2010 output rise, Oil World estimated only 100,000 tonnes

will come from key exporter Malaysia and 1.2 million tonnes from

Indonesia.

Industry regulator the Malaysian Palm Oil Board will release

April’s stocks, output and exports data on Monday. — Reuters

Source : Business Times

Leave a Reply