Palm Oil Exports Gain Amid Declining Production

PETALING JAYA: Malaysia’s palm oil stockpiles fell by almost 11% in
January compared with December 2009 while exports gained amid declining

production.

The latest statistics released by the Malaysian Palm

Oil Board (MPOB) yesterday showed that inventories fell 10.6% to two

million tonnes in January from a revised 2.23 million tonnes in

December, due to higher export and lower production during the month.

Inventories of crude palm oil went down 5.6% to 1.13 million tonnes

from 1.19 million tonnes in December while processed palm oil stocks

decreased to 870,065 tonnes from 1.04 million tonnes previously.

According

to MPOB, production dropped 13% to 1.32 million tonnes in January from a

revised 1.52 million tonnes in December, the lowest monthly output

since April 2009.

Crude palm kernel oil production fell to

172,758 tonnes from 193,501 tonnes previously while palm kernel cake

production went down to 190,587 tonnes from 213,027 tonnes.

An

analyst said the lower production was expected in view of the seasonal

factor.

He said there could be possible supply risks due to tree

stress and the resurgence of the El Nino phenomenon but he did not

expect the El Nino situation to be severe.

ECM Libra Investment

Research recently said the level of crude palm oil stocks was expected

to come down a notch with the production down-cycle still ongoing.

The

data from MPOB also showed the country’s exports of palm oil hitting

1.46 million tonnes in January, 19.4% higher month-on-month and 7.8%

higher than in January last year.

However, exports of palm kernel

oil declined to 103,100 tonnes in January from 104,585 tonnes in the

preceding month while that of palm kernel cake fell to 249,979 tonnes

from 291,671 tonnes before.

Oleochemical exports fell 6.05% to

185,756 tonnes from 197,719 tonnes.

Source : The Star by Leong Hung Yee

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