KUALA LUMPUR, March 8 ― Malaysia's palm oil stocks could fall below 2 million tonnes by the end of April, which would be the lowest since July, as exports are increasing after Indonesia restricted overseas sales, a senior Malaysian official told Reuters.
Indonesia will suspend some palm oil export permits to secure domestic supply amid rising cooking oil prices ahead of upcoming Islamic festivals, senior Cabinet minister Luhut Pandjaitan said last month.
Jakarta's move has prompted buyers to increase purchases from Malaysia and exports would remain robust in the next few weeks, Ahmad Parveez Ghulam Kadir, director general of industry regulator the Malaysian Palm Oil Board (MPOB) told Reuters late yesterday.
Palm oil inventories in Malaysia are also falling as heavy rainfall restricted production growth, he said.
Stockpiles at the end of January in the world's second-largest producer expanded by 3.26 per cent from the previous month to 2.27 million tonnes, according to the MPOB. ― Reuters