Malaysia's palm oil stocks rise for first time in 6 months in March

By Ashley Tang and Rajendra Jadhav

KUALA LUMPUR, April 10 (Reuters) - Malaysia's palm oil stocks posted their first rise in six months in March, as production recovered and imports rose sharply, offsetting strong festive demand, data from the industry regulator showed on Thursday.

Palm oil stocks at the end of March rose 3.52% from February to 1.56 million tons, marking the first increase since September, the Malaysian Palm Oil Board (MPOB) said.

Malaysia's crude palm oil production rose 16.76% last month from February to 1.39 million tons, the first increase in three months, while palm oil exports rose 0.91% to 1.01 million tons, the MPOB said.

A Reuters survey had forecast inventories at 1.56 million tons, with output seen at 1.31 million tons and exports at 1.02 million tons. PALM/POLL

Palm oil imports surged 82.5% to 121,886 tons in March, the highest since June 2023, due to strong demand during Ramadan and as some producers sought to fulfill export commitments by importing from Indonesia.

"Indonesia's export levies were lower in March, so it made sense to bring in Indonesian palm oil, especially with Malaysia's stock running low," said a New Delhi-based trader with a global trade house.

Malaysia's palm oil consumption in March rose to 453,046 tons from 328,591 tons a month ago, MPOB data showed.

Exports in March were the lowest for the month since 2006, as palm oil's premium over soyoil prompted buyers to purchase more soyoil, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.

"But now, palm oil's premium over soyoil is shrinking. That's bringing buyers back to palm oil, which could keep prices up, unless production jumps sharply from April onward," Bagani said.

Following is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates for March (volumes in tons) PALM/POLL:

*indicates revised figures by the Malaysian Palm Oil Board