MPOB February results - Stocks plunge to below 2 million mt as production tumble sharply | MPOB Feb Actual Canva 1

February end-month stocks plunged to below 2 million mt for the first time in 7 months after the Malaysian Palm Oil Board reported stocks down by 5% to 1.919 million mt from a month ago. The drop was widely predicted after stocks were seen shrinking at the back of a larger fall in supply by absolute terms compared to demand. Supply fell following seasonal low output in February extending the decline for the fourth successive month. February production tumbled 10.18% or 142,783 mt from a month ago to 1.259 million mt, or a loss of 677,652 mt from the peak of 1.937 million mt recorded in October 2023. Meanwhile, monthly export demand contracted the most in 3 years after shrinking 24.75% to 1.015 million mt as major importers slowed down buying of palm amidst bloated stocks at the destination markets. Also weighing down on exports is the elevated palm pricing over competitor bean oil. Palm has been trading at a premium to bean oil since the middle of January and remains at a premium. Domestic consumption was calculated at 377,572 mt, up by 6.98% and palm oil imports shot up 10.38% to 32,556 mt from a month ago.

CPKO exports fell 17.30% to 8,689 mt from the start of the month and biodiesel shipment fell by 27.57% to 29,378 mt.