Malaysia’s palm oil stocks likely grew 6% month on month, but fell 20% year on year to 1.8 million tonnes as at end-August 2020, due mainly to higher output and lower exports, according to survey findings from CGS-CIMB Futures.
In its note, CGS-CIMB said Malaysia’s crude palm oil output probably grew 6% month on month to 1.92 million tonnes in August 2020 while palm oil exports likely fell 14% mom and 12% yoy, as the recent sharp rise in CPO prices may have impacted demand. “Our survey revealed that Sabah and Sarawak estates were the main drivers behind the improving FFB yields. This is not unexpected as Peninsular Malaysia estates posted sharper-than-expected recovery in yields in the May-July period compared with East Malaysian estates,” it said.