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Informist, Monday, Nov. 11, 2024

 

--Malaysia palm oil board: Oct CPO output down 1.35% on month at 1.79 mln tn 

--Malaysia palm oil board: Oct palm oil exports 1.73 mln tn, up 11.07% on mo 

--Malaysia palm oil board: Oct-end palm oil stock 1.88 mln tn, dn 6.3% on mo 

 

MUMBAI – Production of crude palm oil in Malaysia fell 1.35% on month to 1.79 million tonnes in October, according to preliminary data from the Malaysian Palm Oil Board, released Monday. Month-end palm oil stocks fell, while exports rose in October, the data showed. 

 

In October, Malaysia's palm oil exports rose 11.07% on month to 1.73 million tonnes, while stocks fell 6.32% to 1.88 million tonnes, the data showed. This is the first decline in inventory in three months, according to financial news organisation The Edge Malaysia. A Reuters poll had forecast stocks in October at 1.92 million tonnes, output at 1.76 million tonnes, and exports at 1.63 million tonnes. Malaysia is the world's second-largest producer of crude palm oil, and India is the largest consumer of edible oils. 

 

The palm oil sector has been struggling with low output, largely due to ageing trees in top producers, Dow Jones quoted AmInvestment Bank as saying in a research note. After around 25 years of age, the palm oil fruit yield starts declining, making the tree uneconomical. 

 

"The Business Monitor International, a Fitch Solutions Company, has made an upward revision to its price forecast for Bursa Malaysia-listed third-month crude palm oil futures contracts in 2024 and 2025, from 3,850 ringgits per tonne to 4,050 ringgits per tonne and from 3,650 ringgits per tonne to 3,900 ringgits per tonne, respectively," said a report in The Business Today.  

 

To check excess edible oil imports, India had on Sept. 14 increased the basic customs duty on crude varieties of palm oil, soyoil, and sunflower oil to 20% from 0%, which effectively increased the total import duty on these oils to 27.5% from 5.5%. The increase in import duties came after more than two years.

 

Meanwhile, to promote domestic oilseed cultivation, India on Oct.3 allocated INR 101 billion for the National Edible Oil Mission to make India self-sufficient in edible oils. 

 

The following table details Malaysia's palm oil output, exports, and stocks for October compared with the previous month:

 

	Commodity	October(in tn)	September (in tn)	MoM change (in %)
Production	Crude palm oil	1,797,348	1,821,933	(-)1.35
Exports	Palm oil	1,732,448	1,559,846	11.07
	Biodiesel	10,998	16,793	(-)34.51
Stocks	Crude palm oil	943,472	1,054,973	(-)10.57
	Processed palm oil	941,125	956,795	(-)1.64
	Total palm oil	1,884,597	2,011,768	(-)6.32

 

End

 

Reported by Anjali Lavania

Edited by Avishek Dutta

 

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