iGrain India - Malaysian palm oil exports experienced a sharp decline of 14.75% in November 2024, as weak demand, particularly from India, contributed to sluggish performance. According to data from the Malaysian Palm Oil Board (MPOB), total exports of palm oil products fell to 1,487,212 tonnes, a decrease from the previous month's shipment.
The production of crude palm oil (CPO) also dropped by 9.80% to 1,621,294 tonnes in November compared to October, while imports rose by 35.08% to 22,000 tonnes.
By the end of November, Malaysia had an outstanding surplus stock of 1,836,167 tonnes, including 997,494 tonnes of CPO and 928,673 tonnes of refined palm oil.
However, this stock was 2.6% lower than the stock at the end of October 2024. Additionally, the stock of palm kernel oil decreased by 8.32%, reaching 285,610 tonnes.
India, the largest importer of Malaysian palm oil, saw weaker imports in November, likely due to the end of its major festive season in the first week of November.
Despite these challenges, palm oil futures prices on the Bursa Malaysia Derivatives Exchange are expected to rise, supported by the declining stock levels, even though the price remains at a relatively high level. The peak production season for palm oil in Malaysia is now tapering off, which could contribute to the anticipated price improvements.