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Malaysia’s Palm Oil Stocks: Hit the Lowest Level in The Past 7 Months in February 2024

Doc. InfoSAWIT
Malaysia’s Palm Oil Stocks: Hit the Lowest Level in The Past 7 Months in February 2024

InfoSAWIT, KUALA LUMPUR – Palm oil stocks in Malaysia by the late of February 2024 decreased less than 2 million metric ton (mt) for the first time in the past seven months. Malaysia Palm Oil Board (MPOB) reported that the stocks decreased 5% from the previous month with the latest stocks reaching 1.919 million mt. It was anticipated by the bigger decreasing supply than demands.

The decreasing supplies mostly happened for the seasonal lower production in February. This also prolonged the decreasing trend for the fourth month in a row. The February 2024 production significantly decreased 10.18% with the production about 1.259 million mt. This represented the significant loss about 677.652 mt from the peak production in October 2023 that reached 1.937 million mt.

As InfoSAWIT quoted from PalmOilAnalytic, in the same time, the monthly exports did get significant contraction, hit the biggest decreasing in the past three years. The exports decreased 24.75% to be 1.015 million mt because the main importer countries slowed down palm oil purchase when their stocks were abundant. Besides, the increasing palm oil price which was relatively more expensive than soyoil price, burdened the exporters. Since in the midst of January 2024, palm oil was sold in premium price to soyoil price, and this trend continued.

In Malaysia itself, palm oil consumption reached 377.572 mt, reflected the increasing consumption that reached 6.98%. In the contrary, palm oil imports also increased 10.38% to be 32.556 mt to the previous month.

In specific product category, crude palm kernel oil decreased 17.30% to be 8.689 mt since in the early of the month. Biodiesel did decrease significantly that reached 27.57% to be 29.378 mt. (T2)