Malaysia's October palm oil stocks hit new peak as output surges

Malaysia’s palm oil inventory climbed to 3.62 million metric tons in October, setting a fresh high, Business Recorder reported, citing Malaysian Palm Oil Board data. Stocks rose 3.15% from September’s previous peak of 3.51 million tons, extending their monthly increase to seven months.

Production increased for a fifth month, reaching 2.15 million tons, up 1.74% from September’s record 2.12 million tons. Exports also recovered, jumping 55.8% to 1.71 million tons and reaching their strongest level in a year after two months of decline. A Reuters survey had put expected stocks at 3.75 million tons, output at 2.2 million tons and exports at 1.6 million tons, so the reported inventory was below expectations while output and exports were also below their respective forecasts.

The figures show that higher production outweighed the export rebound in building stocks, although shipments rose substantially. For investors tracking edible-oil markets, Malaysia’s production, inventories and export flows are relevant indicators of palm oil supply.