Malaysian palm oil inventories fell for the fourth consecutive month in April as both export and production slowed slightly.
The inventories fell 6.4% on month to 2.17 million metric tonnes while CPO prices in April averaged RM2,410 per metric tonne.
PublicInvest Research has maintained a neutral outlook on the sector with a full-year average CPO price forecast of RM2,500 per metric tonne.
The research house said CPO exports softened 1.5% on year to 1.54 million after a strong increase of 19.2% in the previous month.
“All major consuming countries showed improved demand except India (-24.1%). Meanwhile, EU registered strongest growth, up 43.9% YoY followed by Pakistan,22%, as they stocked up more cooking oils ahead of Ramadan celebration.”
PublicInvest Research also reported a 1% fall in April CPO production in Malaysia in April.
“Production in Peninsular Malaysia retreated 4.4% while East Malaysia climbed 3.2%. Going forward, we expect to see FFB production increasing in the coming months as it prepares to enter high production season.”
The research house also cited AmSpec Agri’s data for the first 10 days of May that Malaysia’s CPO exports fell 9.6% on month. Year to date, CPO prices fell 19% on year to RM2,447 per metric tonne.