CPO Stock in Malaysia Could be More than 2 Million tons

CPO Stock in Malaysia Could be More than 2 Million tons

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) stock in Malaysia could be increasing for more than two million tons for the first time in the past two years. This might happen for the accelerated production and the export activity from Indonesia which delivered the close export competition.

Based on the survey that Bloomberg did, CPO stock in Malaysia could be increasing 15,8% to be 2,05 million tons in August compared to July. This could be the first time that the stocks reach more than 2 million tons since May 2022 and would be the highest numbers since November 2019.

The high or abundant stock would muffle the price which gets decreasing for more than 40% since May 2022. It happens for Indonesia published many regulations to escalate its CPO export, including publishing export levy extension (zero export levy) until the late of October 2022.

Besides the loss of markets because of the recovery distribution from Indonesia, as quoted from TheedgeMalaysia, CPO from Malaysia would be increasing when the peak season comes.

CPO production in Malaysia escalated 8,3% to be 1,70 million tons, the highest since October, as the survey claimed while the exports reached 1,32 million tons or smaller than those in the previous month.

Managing Director of TransGraph Consulting Pvt Ltd in Hyderabad, Nagaraj Meda said, CPO production could be always increasing until it hits the peak in September 2022 before it gets decreasing until the fourth quarter this year.

“The increasing production would escalate the stocks to be 2,4 millon ton to 2,5 million tons, and eventually would impact to the close price,” Meda said, Monday (5/9/2022). (T2)