Image: Reuters Berita 24 English - Malaysia's palm oil inventories decreased at the end of May as exports jumped to a five-month high a...
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| Image: Reuters |
Berita 24 English - Malaysia's palm oil inventories decreased at the end of May as exports jumped to a five-month high after Indonesia halted shipments, but output fell less than anticipated, according to figures released on Friday by the Malaysian Palm Oil Board (MPOB).
According to MPOB, the world's second largest producer's stockpile decreased by 7.37 percent from April to May, reaching 1.52 million tonnes, for the sixth consecutive month.
Production, which had increased over the previous two months, decreased to 1.46 million tonnes by 0.07 percent. Imports declined 33.9 percent .
Exports increased by 26.67 percent to 1.36 million tonnes, the highest level since December, as traders shifted to Malaysian palm oil following Indonesia's three-week export restriction.
Indonesia has changed its stance and is now preparing to accelerate exports of at least 1 million tonnes of edible oil, making it doubtful that the current export rate will continue in June.
To stimulate exports, Indonesia is modifying its export regulations in a number of ways, including cutting the overall export tax and levy.
The restoration of Indonesian supply will limit Malaysia's exports beginning in the second half of June, said Anilkumar Bagani, research director of Mumbai-based vegetable oils broker Sunvin Group. Production data will determine price movement, he added.
A Kuala Lumpur-based dealer predicted that Malaysian inventories will expand in the future, putting pressure on spot-month contracts that are still trading at a premium.
Listed below are the Malaysian Palm Oil Board and Reuters forecasts for May (volumes in tonnes) [PALM/POLL]:
May 2022 May 2022 poll April 2022* May 2021
Output 1,460,972 1,403,540 1,462,050 1,571,525
Stocks 1,521,766 1,543,000 1,642,811 1,569,411
Exports 1,359,174 1,265,460 1,073,038 1,268,659
Imports 50,768 60,000 76,771 89,014
*indicates updated data from the Malaysian Palm Oil Board
