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RBD Palm Olein
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14 May 2025
Stockpiles Surge:
Malaysia’s palm oil stocks rose 19.4% from March to 1.87 million metric tons, the highest level since October 2024. This marks the second consecutive monthly increase.
Production Hits Decade High:
Crude palm oil (CPO) production soared 21.5% to 1.69 million tons, the highest April output since 2015, surprising analysts who had expected 1.62 million tons.
Exports Rise Again:
Palm oil exports climbed 9.6% to 1.1 million tons, aligning with expectations from a Reuters survey.
Domestic Consumption Drops:
Local consumption fell sharply to 338,737 tons from 453,046 tons in March, contributing to the inventory buildup.
Market Outlook:
Traders view the inventory surge as bearish for palm oil prices, though the commodity continues to trade at a discount to other vegetable oils, which could support demand.
Industry Insight:
A Kuala Lumpur-based trader noted the surprise rebound in production and anticipates further increases as Malaysia enters peak production months.
Category | MPOB Actual (Apr) | Reuters Forecast |
---|---|---|
Stocks | 1.87 million | 1.79 million |
Production | 1.69 million | 1.62 million |
Exports | 1.1 million | 1.1 million |
Domestic Consumption | 338,737 | 345,586 |
Review & Rating
Ratnesh
14 May, 2025
It seems like Malaysia's palm oil industry is experiencing significant fluctuations lately, with production hitting a decade-high in April, leading to a substantial increase in stock levels. Despite the rise in inventory, exports also saw an uptick, which could help balance out some of the excess supply.
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