Lang
Malaysian palm oil stocks were estimated at around 2.173 million metric tonnes at the end of March, a third consecutive monthly decline, as growth in exports outpaced a moderate rise in output at the world's second largest vegetable oil supplier. The figures come from a survey of 14 analysts, traders and planters conducted by Platts, part of S&P Global Energy, and published on 8 April.
Malaysian palm oil stocks had hit a seven-year high of 3.051 million metric tonnes at the end of December, driven by strong production and slower demand from major buyers India and China, according to Malaysian Palm Oil Board data.
Palm oil output is expected to rise to 1.375 million metric tonnes in March, up 7% from the previous month, according to the Platts survey. The survey put exports at 1.565 million metric tonnes, up 38.9% month on month.
The Malaysian Palm Oil Board is due to release official supply and demand data on 10 April.
All figures in millions of metric tonnes
Source: S&P Global Energy, Malaysian Palm Oil Board
Malaysian palm oil futures fell more than 3% on 8 April as crude oil prices dropped following a ceasefire agreement between the United States and Iran, coinciding with weaker vegetable oil prices on global markets and a stronger Malaysian ringgit.
The benchmark third-month palm oil contract for June delivery traded on Bursa Malaysia at 4,615 ringgit per metric tonne ($1,158.67) at 13:16 Singapore time, down 3.1% on the day.
Crude oil prices fell below the $100 a barrel mark on 8 April after US President Donald Trump said he had agreed to a two-week ceasefire with Iran, conditional on the safe reopening of the Strait of Hormuz.
Palm oil futures are closely correlated with crude oil futures, as lower fossil fuel prices make palm oil less attractive as a feedstock for biodiesel production.
In a related development, a limited number of palm oil buyers have started to emerge after losing patience waiting for prices to fall, though levels above 4,900 ringgit per metric tonne remain far too high for buyers, said Sandeep Singh, director of Kuala Lumpur-based vegetable oil trader The Farm Trade, on 6 April.
Platts assessed crude palm oil FOB Indonesia at $1,265 per metric tonne on 7 April, unchanged from the previous day.