Malaysia end-May palm oil stocks, production rise slower than expected

SourceZawya
SectorOil & Gas
CountryMiddle east

KUALA LUMPUR – Malaysian palm oil inventories at the end of May rose slower than expected, as an unexpected jump in domestic consumption of the edible oil offset higher production, official data showed on Thursday. Stockpiles at the world’s second-largest producer expanded 1.49% from April to 1.57 million tonnes, its highest in seven months, according to data from the Malaysian Palm Oil Board (MPOB). This is smaller than a Reuters poll that pegged a 6% rise.

Stocks also remained tight, down 23% from a year ago. Meanwhile, production and exports were also below market estimates. Crude palm oil production gained for a fourth consecutive month, rising 2.84% from April to 1.57 million tonnes. Exports declined 6% to 1.27 million tonnes. Despite the COVID-19-driven movement restrictions across Malaysia, the domestic consumption rose while imports dropped, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group. Domestic consumption nearly doubled to 372,039 tonnes, which analysts and traders said came as...read more...