InfoSAWIT, KUALA LUMPUR - Palm oil stock in Malaysia by the late of August 2022 increased to the highest number in the past 33 months because of the increasing production from the peak season which still run now.
According to Malaysian Palm Oil Board (MPOB) report, the stock increased 18,16% from the previous month to be 2,09 million tons or hit the highest level since November 2019. Crude palm oil (CPO) production increased for three months in a row or 9,67% from July to be 1,73 million tons. The exports decreased 1,94% to be 1,3 million tons, as MPOB mentioned, as quoted from TheedgeMalaysia.
The export activity would remain better for more than 1,3 million tons both in September and October. Director of Pelindung Bestari in Selangor, Paramalingam Supramaniam said, the cheap CPO would trigger more consumers from India.
Meanwhile Executive Chief of Malaysian Palm Oil Association (MPOA), Joseph Tek predicted, the worry remain still on CPO demands from Malaysia because Indonesia revised the tax and increased export volume to empty many CPO tanks or supply. This would potentially burden CPO reference price and would make close competition.
MPOA also warned that the weather and La Nina which could be happening three times, as the first thing happened in this century would have something with the production in the next few months.
La Nina could happen until the late of this year with highly intensive rain and flood that would make the plantations hit the limits, as Tek said.
The lack of workers in Malaysia could decrease the production in 2022 in the second biggest palm oil producer in the world or at least, there would be no change from the last year production which reached 18,8 million tons. (T2)