Oleochem Analytics — Malaysia’s end-May palm oil stocks hit an eight-month high up by 1.49% from the previous month to 1.57 million tons, data from industry regulator Malaysian Palm Oil Board (MPOB) showed on Thursday.
Crude palm oil production in May grew for a third consecutive month, rising by 2.84% from April to 1.57 million tons, while palm oil exports fell by 6% to 1.27 million tons, MPOB said.
MPOB said oleochemical exports fell for a second consecutive month, dropping by 6.84% in May to 220,594 Mt from 236,803 Mt the previous month. Biodiesel exports in May were down by 47.76% to 14,643 Mt from 28,029 Mt in April this year.
Even though palm oil products have seen a strong demand recovery amid China and India restocking activities, prices on Malaysia’s crude palm oil are likely to be affected by the national total lockdown announced last week by the country, and the strength in prices from competing edible oils, such as soybean oil.
Malaysia’s national total lockdown, that will last until June 14, limits workforce capacity in enclosed spaces like palm oil and biodiesel processing plants to 60%, while plantation and nursery workforce capacity will be able to operate as normal at 100%, according to the Malaysian Palm Oil Board (MPOB).