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Malaysia Palm Oil Production Drops

10 October 2012
USDA Foreign Agricultural Service

MALAYSIA - Malaysia's crude palm oil (CPO) production dropped marginally to 1.66 million tons in August 2012. The forecast 2011/12 CPO output remains 18.2 million tons.

Exports rose 10 per cent to 1.4 million tons in August. The two million ton increase in duty free CPO exports has not yet mitigated growing stocks. Reflecting the rising stocks, the monthly average delivered CPO price dropped to $884 per ton in September.

As most major plantations companies have started replanting programs, CPO production is expected to trend downward, particularly in West Malaysia.

However, the decline in W. Malaysia will be compensated by growing production in East Malaysia as the age profile of plantations there mature.


Growing stock led to the monthly average delivered CPO price dropping from $903/ton in August to $884/ton in September.

For comparison, the average CPO price for September 2011 was $1,029/ton.

Refined/Bleached/Deodorised (RBD) Palm Oil FOB average price increased from $938/ton in August to $943/ton in September.


The stock level for the month of August was 2.11 million tons compared to 2 million tons in July.

Although there was about a 10 per cent increase in exports in August compared to July, this was not enough to mitigate growing stocks.


A preliminary official report shows an increase in palm oil exports of 130,000 ton to 1.4 million tons in August.

Exports increased in August due to the earlier announcement of additional 2 million ton duty free quota of CPO for export.

August 2012 exports were 16 per cent lower than August 2011.

Further Reading

You can view the full report by clicking here.

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