KUALA LUMPUR (Nov 10): Malaysia's end-October palm oil inventories rebounded from the month before as exports sank, while production climbed to a 13-month high, data by the nation's palm oil board showed on Wednesday (Nov 10).
The stockpile of the world's second largest producer expanded 4.42% from September to 1.83 million tonnes, according to the Malaysian Palm Oil Board (MPOB).
Crude palm oil output gained 1.3% to 1.73 million tonnes, its highest since September 2020.
Production remained below pre-pandemic levels, however, and the stockpile was 16.8% below the 10-year historical average of 2.2 million tonnes for October, said Marcello Cultrera, an institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
Exports plunged 12.03% to 1.42 million tonnes as key importers slowed purchases after a surge in shipments during the previous month.
A sharp rally in benchmark palm oil prices, which hit a record of RM5,220 a tonne in mid-October, had also deterred demand, traders and analysts said.
"MPOB data emerged within expectations, reflecting the largely priced-in bearish tone," said Sathia Varqa, a co-founder of Singapore-based Palm Oil Analytics.
Imports fell 32.73% to 50,540 tonnes.