PETALING JAYA: Malaysia’s palm oil stockpiles fell by almost 11% in January compared with December 2009 while exports gained amid declining production.
The latest statistics released by the Malaysian Palm Oil Board (MPOB) yesterday showed that inventories fell 10.6% to two million tonnes in January from a revised 2.23 million tonnes in December, due to higher export and lower production during the month.

Inventories of crude palm oil went down 5.6% to 1.13 million tonnes from 1.19 million tonnes in December while processed palm oil stocks decreased to 870,065 tonnes from 1.04 million tonnes previously.

The country’s exports of palm oil hit 1.46 million tonnes in January, 7.8% higher than in January last year.

According to MPOB, production dropped 13% to 1.32 million tonnes in January from a revised 1.52 million tonnes in December, the lowest monthly output since April 2009.

Crude palm kernel oil production fell to 172,758 tonnes from 193,501 tonnes previously while palm kernel cake production went down to 190,587 tonnes from 213,027 tonnes.

An analyst said the lower production was expected in view of the seasonal factor.

He said there could be possible supply risks due to tree stress and the resurgence of the El Nino phenomenon but he did not expect the El Nino situation to be severe.

ECM Libra Investment Research recently said the level of crude palm oil stocks was expected to come down a notch with the production down-cycle still ongoing.

The data from MPOB also showed the country’s exports of palm oil hitting 1.46 million tonnes in January, 19.4% higher month-on-month and 7.8% higher than in January last year.

However, exports of palm kernel oil declined to 103,100 tonnes in January from 104,585 tonnes in the preceding month while that of palm kernel cake fell to 249,979 tonnes from 291,671 tonnes before.

Oleochemical exports fell 6.05% to 185,756 tonnes from 197,719 tonnes.