Malaysia's palm oil stockpiles expected to hit 19-month high
PETALING JAYA : Palm oil inventories in Malaysia climbed to the highest level since December 2023 as production in the world's second-biggest grower rebounded, according to a Bloomberg survey.
Stockpiles surged almost 10% from a month earlier to 2.23 million tonnes in July, a fifth month of gains, the median of 12 estimates in the poll of plantation executives, traders and analysts showed.
Estimates of higher supplies in the Southeast Asian nation, coupled with sluggish demand from overseas buyers, could weigh on benchmark prices at a time of the high production cycle, which typically peaks in October.
Still, a brighter outlook for purchases from top buyer India ahead of local festivals, as well as robust biodiesel consumption in Indonesia, has cushioned prices recently.
Benchmark palm oil futures closed 0.4% higher at RM4,245 a tonne in Kuala Lumpur on Friday.
That followed an increase of more than 6% in July – the biggest monthly jump since February.
Crude palm oil production last month rose 8.3% to 1.83 million tonnes, the highest level in 11 months, the survey showed.
That compared with a decline of 4.5% in June. Exports increased 3.2%, according to the poll.
The Malaysian Palm Oil Board will publish its monthly data on Aug 11.
'Stockpiles are expected to rise due to a jump in Malaysian production and lower domestic consumption in July,' said Anilkumar Bagani, head of research at Mumbai-based Sunvin Group.
'Still, a level above 2 million tonnes during the peak production season may not be too 'burdensome to prices', especially when Indonesian palm oil supplies are tight because of high blending rates with petroleum,' he said.
More from the survey:
Stockpile estimates ranged between 2.09 million and 2.49 million tonnes, while production was seen between 1.7 million and 1.87 million tonnes.
Export forecasts were between 1.15 million tonnes and 1.45 million tonnes.
Imports were seen at 50,000 tonnes, below 70,015 tonnes in June.
Local consumption was between 250,000 tonnes and 450,000 tonnes.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
27 minutes ago
- Free Malaysia Today
MP questions ‘secret' gazetting of new KL planning rules
Seputeh MP Teresa Kok said the new planning rules weakened transparency and limited public objections to development projects. PETALING JAYA : DAP's Teresa Kok has criticised the government for 'secretly' gazetting new planning regulations for Kuala Lumpur, which sidelined public consultation and handed excessive power to the city mayor. Kok said civil society organisations only recently became aware of the Federal Territory of Kuala Lumpur Planning Rules 2025, which were gazetted on June 13 and took effect three days later. 'I want to ask the government why these new planning rules were gazetted without any public consultation or engagement with stakeholders, especially in the spirit of participatory governance?' She spoke on the issue while debating the 13th Malaysia Plan (13MP) in the Dewan Rakyat this evening. Kok said Rule 3 of the new guidelines only required the mayor to consult others if it is deemed necessary, leaving no guarantee of public input. She said the rules, which replace decades-old planning laws, weakened transparency and limited public objections to development projects. She urged the government to review the rules and explain how they were formulated. On education, Kok said the 13MP's focus on TVET was not enough to fix parents' declining confidence in public schools. 'For urban communities, more and more parents are choosing to send their children to private primary and secondary schools, or even resort to homeschooling. 'This is due to a growing lack of confidence in the national education system,' she said, adding that a nationwide survey must be carried out to understand this trend. Kok, who once served as primary industries minister, also spoke on the RM1.4 billion allocation over five years for replanting of oil palm. She said this was insufficient, covering only 0.5% of the country's plantations annually. At RM20,000 per hectare, the allocation allows just 14,000 hectares to be replanted annually, or 28,000ha with a 50% subsidy. 'This allocation fails to meet the minimum 4% annual replanting target,' she said. As such, Kok urged the government to tap windfall tax revenue from the oil palm industry to help smallholders, who work on a quarter of Malaysia's planted area.
Borneo Post
2 hours ago
- Borneo Post
140 contingents to enliven National Day parade in Sabah
Tun Musa (centre), Masidi (fourth left) and others during the courtesy call. – Information Department photo KOTA KINABALU (Aug 5): An estimated 140 parade contingents are set to enliven the 2025 Sabah National Day celebrations. State Finance Minister Datuk Seri Panglima Masidi Manjun stated that the contingents comprise government agencies, schools, voluntary organizations and uniformed units. 'What makes this year special is that, for the first time, the celebrations will be attended by Head of State Tun Musa Aman, adding greater significance to the event. 'Tun Musa is expected to arrive at 7:30am, so we anticipate official events will take place between 7:30am and 10:30am. 'We also expect public attendance to mirror last year's, where strategic spots along the parade route will be filled early. 'Therefore, I urge all Sabahans to come together in celebrating and attending the event on August 31 at Jalan Tun Fuad Stephens, to demonstrate our love for our nation and for Sabah,' he told reporters after paying a courtesy call on Tun Musa at Istana Seri Kinabalu on Tuesday. Meanwhile, Masidi, who is also the chairman of the 2025 Sabah National Day Main Committee, said this year's theme, 'Malaysia Madani: People Embraced' (Malaysia Madani: Rakyat Disantuni), resonates deeply, especially with leaders. 'This theme is profoundly relevant, particularly as a call to leaders and those entrusted with positions of authority to always be on the ground, engaging with and caring for the people. 'Thus, this theme urges leaders to be present among the people, show compassion, and visibly demonstrate their presence as the pillars upon whom the people rely to realize their aspirations,' he added. He also advised the public to continue flying the Jalur Gemilang and the Sabah state flag as symbols of love for Malaysia and the state of Sabah. Also present were Assistant Finance Minister Datuk Tan Lee Fatt and Kota Kinabalu City Mayor Datuk Seri Dr Sabin Samitah.
Malay Mail
2 hours ago
- Malay Mail
Ringgit ends higher against US dollar on Fed rate cut hopes
KUALA LUMPUR, Aug 5 — The ringgit continued to close higher against the US dollar as expectations of an interest rate cut by the US Federal Reserve (Fed) gained momentum, said an analyst. At 6pm, the local note climbed to 4.2260/2310 against the greenback from yesterday's close of 4.2350/2385. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that risky assets such as equities have been rising as a lower interest environment would be positive for corporate finances, especially on their cost of borrowings. Commenting on the US Fed, the economist noted that a series of Fed speakers are expected to shed more light on the future direction of US interest rates. He noted that several Fed officials, San Francisco Fed President Mary Daly, Boston Fed President Susan Collins, and Fed Governor Lisa Cook, will be speaking to the public on Thursday. 'Our sense is that the market would want to hear the latest conviction among the Fed as to how the interest rate would evolve in the months to come, especially in the September Federal Open Market Committee meeting,' he told Bernama. At the close, the ringgit ended firmer against major currencies. It rose against the Japanese yen to 2.8618/8654 from 2.8652/8677 at the close on Monday, gained versus the British pound to 5.6159/6226 from 5.6296/6342, and was higher against the euro to 4.8772/8830 from 4.8978/9018 previously. The ringgit was also strengthened against regional peers. It improved against the Singapore dollar to 3.2793/2834 from 3.2878/2908, inched up versus the Thai baht to 13.0408/0627 from 13.0452/0616, strengthened against the Indonesian rupiah to 257.8/258.2 from 258.2/258.5 and improved against the Philippine peso to 7.33/7.34 from 7.38/7.39 previously. — Bernama
