MPOB Malaysia—March end-month palm oil stocks rose much higher than expected after production locked in the best monthly rise in 6 years and domestic consumption plunged to the lowest in 11 months from a high base in the previous month and higher prices. The pick-up in export pace was not sufficient to keep stocks contained.
March end-month stocks notched a 10.72% rise to 1.445 million tons from February, rising at the highest pace in 11 months, defying the market expectation of 0.90 to 2.30% gain. Stocks rose after production recorded a sharp surge of 28.43% emerging at the higher end of the market expectation of 21.30—30%.
Exports surpassed 1 million tons for the first time this year gaining 23.60% to 1.182 million tons but still 13.05% lower in the first quarter of 2021 versus the same time last year. Production plunged 42.07% quarter-on-quarter weighed down by dismal output in the first 2 months of this year. April output could be…
For more analysis please subscribe or get a free trial, [email protected]