KUALA LUMPUR: Palm oil stockpiles in Malaysia likely rose for a third month in September to the highest level since February 2016, lifted by increasing production in the world’s second-largest grower.
Inventories advanced 3.1 percent to 2 million tonness from August, according to the median estimate of 11 planters, traders and analysts surveyed by Bloomberg. That would be the highest in 19 months and a 29% increase from a year ago. Production of crude palm oil inched up 1.1% to 1.83 million tonnes, while exports climbed 8.1% to 1.61 million tonnes, the highest since August 2016, the survey showed. The Malaysian Palm Oil Board is set to release official data on Oct 10. Palm oil prices in Malaysia averaged about 4% higher in September from a month earlier, helped by stronger export demand and concerns of a smaller-than-expected rise in Malaysian supplies due to a shortage of workers and lingering El Nino Effects, Ivy Ng, regional head of agribusiness at CIMB Investment Bank Bhd., wrote in an Oct. 3 note.
