InfoSAWIT, JAKARTA - Survey by Reuters on Tuesday (5/9/2023) showed that palm oil supply in Malaysia by the late of August 2023 increased to the highest level in the past six months because of increasing production and slow exports.

Prior the stocks in the past four months in a row increased 9,23% from July to be 1,89 million metric tons, according to median estimation from 11 traders and analysis that Reuters did survey.

Palm oil output in the second biggest palm oil country in the world could increase 6,83% to be 1,72 million metric tons, the highest level since November.

“The production gets increasing and might be hit the top in October before rainy season comes,” Director of Broker Pelindung Bestari in Selangor, Paramalingam Supramaniam said, as quoted from The Edge Malaysia.

Other survey also mentioned that the exports could be decreasing 1,77% to be 1,33 million metric tons.

The biggest palm oil consumer from India could be purchasing it in June to July 2023. “The lack of supply in India made the demand remain high,” Paramalingam said.

Palm oil demands would still be slow globally because the economy (in many countries) is still slower than it in last year, the worry about palm oil demands in China and also the worry about palm oil supply that is caused by weather which supports palm oil price to get more expensive because of El Nino.

Director Farm Trade, Sandeep Singh said, palm oil could be at about RM 4.000 (US$ 859,85) per ton “When El Nino could increase for the next several months,” he said. (T2)