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Malaysia Oilseeds and Products Update November 2011

12 December 2011

USDA Foreign Agricultural Service

Malaysia's crude palm oil (CPO) production rose 2 percent to 1.9 million tons in October 2011. Palm oil exports jumped 19 percent, resulting in a lower carry-out stock level at the end of October, according to the USDA Foreign Agricultural Service.

Executive Summary:

Production

The Malaysian Palm Oil Board (MPOB) reported that total crude palm oil (CPO) production rose 2 per cent to 1.9 million tons in October 2011. Peninsular Malaysia's production increased about one percent during the month of October, while East Malaysia's output was up 3.7 per cent. Compared to October 2010, output during October 2011 was 16.6 per cent higher. The palms are expected to experience a seasonal downtrend in output from November till February. Post still expects CPO output to be about 5.1 million tons during the Oct-Dec quarter and the total CPO output for 2011 is expected to touch 19 million tons.

Price

The monthly average delivered CPO price rose from $929/ton in October to $968/ton in November. For comparison, the average CPO price for October 2010 was $1,029/ton. Currently, the key determinant of the CPO price movement is the declining carry-in stock level which is influenced by the expected seasonal decline in CPO production in the coming months. Refined/Bleached/Deodorized (RBD) Palm Oil FOB average price also increase from $947/ton in October to $1,022/ton in November.

Stocks

Despite a higher CPO output, stronger demand from overseas resulted in a lower stock level at the end of November. Compared to October 2010, the stock level was 304,000 tons higher. With outlook for exports looking bright in the near term, the stock level is expected to further decline to 1.9 million tons by end of December.

Trade

A preliminary official report shows PO exports rose by 19 percent to 1.8 million tons in October.

Exchange Rate: US$1 = RM3.168 (Nov 30, 2010); RM3.070 (Oct 31, 2011); RM3.1826 (Nov 22, 2011)

Further Reading

- You can view the full report by clicking here.

December 2011

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