Malaysian palm oil stocks climbed 6% MoM in March, fresh data showed Monday, with recovering palm oil production outpacing increased international demand. Malaysian crude palm oil production soared 16% MoM to 1.46mn t, driving stocks 2% higher mom to 785,390t. Even so, crude palm oil stocks were still pegged at their lowest level for this time of year in over five years, 18% lower than March 2016 levels.
Malaysian palm oil prices plummeted almost 14USD/t DoD Monday on the back of the news, with market participants also expecting Wednesday’s USDA WASDE report on global agriculture supply and demand to add a bearish tone to the global vegetable oils complex. Participants expect to see ending US soybean stock predictions for this harvest season remain at record high levels in Wednesday’s report, with last month’s report showing expected ending stocks soar 3.6% MoM to 435mn bu.
For in depth analysis of the global vegetable oil markets, please contact Patrick Meister to arrange a trial to PRIMA’s Weekly International Vegetable Oils Report – [email protected]