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Malaysia end-Oct palm oil stocks seen higher as exports plunge

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KUALA LUMPUR: Malaysia's palm oil inventories likely rebounded at the end of October, lifted by a plunge in exports amid shrinking output.

Palm oil stockpile at the world's second largest producer is pegged to rise 3.4% to 1.81 million tonnes, according to a median estimate of nine planters, traders and analysts polled by Reuters.

The decline, much lower than historical trends, reflects the ongoing severe shortage of foreign workers, ageing trees due to slow replanting, slower new planting rates, and lower fertiliser input due to logistics issues, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.

 

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