Malaysia's palm oil stocks likely fell 7% on month in March, led by rising exports

Malaysia's palm oil stocks likely fell 7.3% on the month to 1.78 million mt by end-March, as better production was offset by rising exports, an industry poll by S&P Global Commodity Insights showed April 10.

Production of palm oil by the world's second-largest producer in March was pegged at 1.41 million mt, up 11.9% from February, according to the median estimate of 13 analysts, traders and growers, owing to a seasonal pickup in yields and more working days in the month.

Official supply and data for March will be released April 15 by the Malaysian Palm Oil Board.

Palm oil exports could rise to 1.23 million mt in March, up 20.6% from February, the median estimate of the palm oil survey showed, driven by an uptick in shipments to India, the largest buyer of vegetable oils in the world.

* All figures in million mt

In March, shipments to the second-largest buyer China rose marginally, while those to the EU fell 14%, according to data released earlier in March from cargo surveyor Intertek Testing Services, or ITS.

Malaysian palm oil exports are expected to rise further in April. Over April 1-10, they are estimated at 431,190 mt, up 12.7% from the same time period a month ago, according to ITS.

In April, palm oil production may be affected by lower-than-expected rainfall in parts of Malaysia, coupled with above-normal temperatures, a Kuala Lumpur-based trader told S&P Global.

Platts, part of S&P Global, assessed crude palm oil FOB Indonesia at $990/mt on April 9, up 2.6% from the start of the month.