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Malaysian CPO output likely grew 9% in October
KUALA LUMPUR: Malaysian crude palm oil (CPO) output may have grown 9% month-on-month to 1.95 million tonnes in October, 2017, according to survey findings by the CIMB Futures team.
Meanwhile, palm oil export likely grew by about 2.4% on-month, based on export statistics.
“The m-o-m rise in exports in October was due mainly to stronger demand from EU (+50% m-o-m due to restocking activity), which more than offset weaker demand from Pakistan and US,” said CIMB
While official figures will be relased on Nov 10, 2017, CIMB estimated a 10% increase in Malaysian palm oil inventories rose 2.23 million tonnes as at end-October.
CPO prices in October fell 2% on-month to RM2,736 per tonne due to expectations of higher palm oil supply in the coming months, although CIMB noted that the drop was not significant due to CPO’s attractive discount to soybean oil of US$148 per tonne.
The Bureau of Meteorology Australia has predicated that there will be a short and weak La Nina occurence, which CIMB said would not significantly disrupt palm oil supplies to lead to a strong increase in CPO prices.
“We expect Malaysian planters to post stronger earnings in 3Q17 both on a y-o-y and q-o-q basis due to higher production. We are sector Neutral as the current CPO price may not be sustainable as supply recovers,” it said.
Source: http://www.thestar.com.my/business/business-news/2017/11/03/malaysian-cpo-output-likely-grew-in-october/#VVh1zF92tFSZXjyP.99