KUALA LUMPUR (June 11): The Malaysian Palm Oil Council (MPOC) is forecasting total palm oil production to increase to between 19.5 million to 19.6 million tonnes in the third quarter, compared with 16.44 million tonnes a year ago.
Speaking at the webinar organised by the MPOC, its CEO Datuk Dr Kalyana Sundram said that Malaysia’s palm oil exports are projected to be 4.65 million tonnes, up 2.5% quarter-on-quarter (q-o-q) due to the gradual increase in demand from traditional markets.
India is expected to import up to 2.15 million tonnes of the edible oil amid the crude palm oil duty (CPO) excise exemption and competitive pricing versus other palm oil producers.
China’s demand for palm oil could also improve in the third quarter, with an estimated import volume of 1.8 million tonnes during the quarter, he added.
“EU [European Union] demand for palm oil is anticipated to improve owing to a decline in rapeseed production due to detrimental weather and lower seed crushing activities. It is projected that palm oil could fill the gap in the third and fourth quarters of 2020,” he said.
According to the Malaysian Palm Oil Board (MPOB) data, total palm oil stocks for May came in 0.5% lower on a month-on-month (m-o-m) basis to 2.03 million tonnes, from 2.04 million tonnes in April.
Total crude palm oil (CPO) stocks were down 4.6% m-o-m at 996,730 tonnes in May, from 1.04 million tonnes registered in April.
Malaysia’s palm kernel oil (PKO) stocks rose to 412,055 tonnes, from 392,694 tonnes recorded in April.
CPO production remained flat m-o-m at 1.65 million tonnes while crude palm kernel oil (CPKO) rose to 196,712 tonnes in May, from the 167,131 tonnes noted in April.
Palm oil exports grew by 10.7% m-o-m to 1.36 million tonnes, from 1.24 million tonnes in April.
Source : The Edge Markets