Malaysia’s vegetable oil stocks likely up 7.6% m-o-m at end-Feb to 1.43 mil tonnes, says CGS-CIMB by admin- Friday, March 5th, 2021 08:01:09 AM
Malaysia’s vegetable oil stocks likely grew 7.6% month-on-month (m-o-m) to 1.43 million tonnes at end-February thanks to a slower decline in production compared to exports, consistent with CGS-CIMB. While revealing its survey findings, CGS-CIMB Futures said it projected a flat m-o-m crude vegetable oil (CPO) output of 1.13 million tonnes in February, which is best than the historical trend of a 6.8% m-o-m fall in February output over the past 10 years, possibly thanks to crop recovery. It also estimated vegetable oil exports will fall 6% m-o-m in February to 890,000 tonnes thanks to the high selling prices for CPO and tight supply in Malaysia. CGS-CIMB also anticipated average CPO price to rise 4% m-o-m to RM3,897 per tonne in February on concerns over the low inventory level of vegetable oil and global edible oils supplies. “We project CPO prices to trade at RM3,200 to RM3,700 per tonne in March amid low inventory in Malaysia, which can take time to rebuild. We expect vegetable oil supply to recover in 2Q21 as weather normalise,” it said. It maintained its average CPO price forecast of RM2,900/RM2,700 per tonne for 2021/2022 and a “neutral” turn the world.