Palm oil stockpiles in Malaysia, the world’s second biggest producer, increased more than expected bringing level up from their lowest point since June 2013. Production increased 6.1% to 1.67 million tons and exports fell 2.3% to 1.45 million tons according to the Malaysian Palm Oil Board. This compares to estimates for 1.62 million tons of production and 1.45 million tons of exports according to a Bloomberg survey. Expectations are that stockpiles will keep growing as exports cannot keep up and that palm oil prices will also be affected by the global glut of soybeans to make soyoil, ample supplies, and reduced weather risks. The U.S. soybean harvest is now estimated to reach 3.865 billion bushels – exceeding the estimate of 3.8 billion bushels by the U.S. Department of Agriculture. (USDA). Palm oil production in Malaysia may reach a record of between 19.7 million tons and 19.9 million tons while Indonesia’s output is forecast to break records at 30.5 million tons or more according to Godrej International Ltd.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service