InfoSAWIT, KUALA LUMPUR – Palm oil stock in Malaysia could be increasing to the highest level for the past six months until August because the production increased but exports decreased.
In the survey by Bloomberg, palm oil stocks increased about 10% from the previous month to be 1,90 million tons. This means, the stock increased about 27% of the lowest level in April and could be the signal to get issue in getting reference price.
Crude palm oil (CPO) increased about 7,5% to be 1,73 million tons – the highest stocks since October 2022, according to the survey. But the exports could be decreasing 1,5% to be 1,33 million tons after increasing 16% in the previous month.
As quoted from Bloomberg, CPO price at Kuala Lumpur Exchange would be difficult to be always at psychologic price at RM 4.000 when there is a worry that the expensive price would decrease palm oil demands. At Malaysia Derivatives Exchange CPO got cheaper on Tuesday 0,6% to be RM 3,961 per ton in the midday.
The investors also noticed the palm oil production in Malaysia and the peak harvest could be in September and October 2023. Though the stock could be accumulated for some months to go, it is predicted to be limited by the slowing increasing production from the estimation and the stable demands from the consumers for heading religious days.
“Just like in China, there would be Golden Week festival and in India there would be Diwali in November,” Senior analyst in Fastmarkets Palm Oil Analytics, Sathia Varqa said. (T2)