Malaysia’s Palm Oil Stocks Seen To Dip 2% In September As Higher Exports Overtook Rising Supply by admin- Thursday, October 8th, 2020 07:43:13 AM
Malaysia’s palm oil stocks are likely to have dipped 2% month-on-month (m-o-m) to one.67 million tonnes at stop-September 2020 as better exports more than offset rising deliver, stated CGS-CIMB Research in a notice nowadays.
CGS-CIMB analyst Ivy Ng stated a survey by means of CGS-CIMB Futures revealed that Malaysia’s palm oil output possibly rose 2.6% m-o-m in September, however export extent multiplied at a quicker price of 9% m-o-m.
“Tighter inventories, worries over labour problems in Malaysia and weather issues may also keep crude palm oil (CPO) charges supported in October,” she said.
She projected CPO fees to exchange at RM2,400 to RM2,800 per tonne this month.
According to her, the average CPO price rose 3.8% m-o-m and 39% year-on-12 months (y-o-y) to RM2,924 in keeping with tonne in September due to concerns over rather low stock stages of palm oil in Malaysia and Indonesia, and that output should disappoint due to labour problems in Malaysia and climate troubles.
“CPO prices may be capped as concerns over tight inventories can also ease if production recovers in 4Q (the fourth quarter) for Indonesia, whilst the B30 mandate can be hard to be fulfilled past 2020 because of a loss of funding,” she said.
She reiterated her “neutral” call for the plantation zone, with Genting Plantations Bhd, Hap Seng Plantations Holdings Bhd and Ta Ann Holdings Bhd as her sector pinnacle choices for Malaysia.Lam Jian Wyn