Singapore — Palm oil stocks in Malaysia came in within market expectations, falling to a 10-month low of 2.447 million mt in May, data released on Wednesday by the Malaysian Palm Oil Board, or MPOB, showed.
"Data came in as expected, no surprises," a Singapore-based analyst said.
Earlier, CIMB bank in a note June 4 had estimated Malaysian palm oil stockpile at 2.39 million mt in May.
May CPO inventories in Malaysia fell 10.33% month on month, boosted by exports and domestic consumption.
CPO production climbed 1.35% month on month to 1.671 million mt in May, up 9.57% year on year.
Malaysian palm oil exports rose 3.51% month on month in May to 1.711 million mt. Palm oil imports fell 0.52% month on month to 61,789 mt.
Shipments to China dropped 36.77% month on month to 127,101 mt, while cargoes to India barely grew, inching up 0.85% month on month to 528,599 mt. In contrast, cargoes to EU surged 43.65% month on month to 206,685 mt.
Meanwhile, palm-based PME biodiesel exports from Malaysia jumped 162.2% month on month in May to 66,617 mt. Current weakness in the gasoil market, however, muted demand for PME in Europe and China.
"Overall, an expected bullish report," Sathia Varqa, owner and co-founder of Singapore-based Palm Oil Analytics, said.
"Stocks fell well within market expectation on higher exports and domestic consumption (303,607 mt, up 33.22% month on month), while production rose against expectation of 1% to 2% decline. Jump in domestic consumption from seasonal demand helped to trim stocks lower in May. Drop in import was the biggest surprise against expectation of 13%-19% rise," he added.
-- Donavan Lim, email@example.com
-- Edited by Manish Parashar, firstname.lastname@example.org