iGrain India - In October 2024, Malaysia's palm oil export performance showed a significant improvement. The country exported a total of 17.32 lakh tonnes of palm oil products,
marking an 11.07 percent increase compared to the previous month. This surge in exports was driven by higher shipments to countries like India.
Despite the positive export trend, crude palm oil (CPO) production in Malaysia decreased by 1.35 percent in October, totaling 17.97 lakh tonnes, down from the previous month.
This decline in production, combined with the strong export performance, contributed to a reduction in palm oil stocks, which fell by 6.32 percent to 18.84 lakh tonnes at the end of October. The stock included 9.43 lakh tonnes of CPO and 9.41 lakh tonnes of processed palm oil.
In addition to this, palm kernel oil stock saw a sharp drop of 13.63 percent, amounting to 3.11 lakh tonnes. Interestingly, Malaysia's palm oil imports rose dramatically by 198 percent to 16,347 tonnes in October.
As the world’s second-largest producer and exporter of palm oil after Indonesia, Malaysia’s better export figures and reduced stock levels have brought relief to the palm oil industry.
These factors are also expected to drive a potential increase in the benchmark palm oil futures prices on the Bursa Malaysia Derivatives (BMD) Exchange.