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Date
 11/03/2020
News Provider
 Norsaidatul Najwa Mohd Shaharmi
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 Successful Farming
Headline
 UPDATE 1-Malaysia end-Feb palm oil stocks slump 4.2% as domestic demand rises


Successful Farming (10/03/2020) Palm Feb stocks down 4.2% to 1.68 mlntonnes * Palm Feb output up 10% to 1.29 mlntonnes * Palm Feb exports fall 11% to 1.08 mlntonnes (Adds details, quotes from analysts) By Mei Mei Chu KUALA LUMPUR, March 10 (Reuters) - Malaysia's palm oil stocks at the end of February fell 4.2% from the previous month as increased domestic consumption exceeded an increase in output, according to data released by industry regulator the Malaysian Palm Oil Board (MPOB) on Tuesday. Stockpiles of the edible oil fell to 1.68 million tonnes last month, the lowest since June 2017, the MPOB data showed. <MYPOMS-TPO> Inventories fell even as output rose last month on the surge demand. Production in the world's second-largest palm producer jumped for the first time in five months, rising 10% from January to 1.29 million tonnes, the MPOB data showed. <MYPOMP-CPOTT> Production rose as oil palm trees recovered from prolonged stress due to dry weather last year, said Adrian Kok, equity analyst at Kenanga Investment Bank. Malaysia's domestic consumption rose because of lower prices and purchases increased as people hoarded palm oil while staying home to avoid contracting the new coronavirus, said SathiaVarqa owner and co-founder of Singapore-based Palm Oil Analytics. Based on MPOB data, domestic consumption for February was 346,720 tonnes, up 17.6% from the month before. Demand outside of Malaysia fell last month because of the coronavirus outbreak in China and India's import curbs on refined palm oil. February exports slumped 11% from January to 1.082 million tonnes, the lowest since February 2015, according to MPOB. <MYPOME-PO> Exports to top buyer India, who informally halted purchases from Malaysia after a diplomatic tiff, dropped 54% from January to 21,130 tonnes. Shipments to China, the second-largest buyer, fell 11% from January to 156,805 tonnes from January. Despite the slump in February exports, traders are expecting March exports to recover as buying picks up ahead of the Muslim holy month of Ramadan that starts in April this year. A Reuters survey had pegged February end-stocks to dip 1.4% from the month before to 1.73 million tonnes. February production was expected grow by 9.8% from January to 1.28 million tonnes, while exports were forecast to plunge 11.4% month-on-month to 1.075 million tonnes. Here is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates for February (volumes in tonnes): Feb 2020 Feb 2020 poll Jan 2020* Feb 2019 Production 1,288,515 1,280,000 1,171,534 1,544,517 Stocks 1,681,599 1,755,414 1,755,480 3,045,493 Exports 1,082,345 1,213,539 1,282,000 1,321,287 Imports 66,735 85,033 80,000 94,278 * indicates revised figures (Reporting by Mei Mei Chu; Editing by Tom Hogue and Christian Schmollinger)


Read more at https://www.agriculture.com/markets/newswire/update-1-malaysia-end-feb-palm-oil-stocks-slump-42-as-domestic-demand-rises



ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
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