KUALA LUMPUR- Malaysia’s palm oil inventories at end-September likely swelled to their biggest in nearly three years amid peak production season, a Reuters survey showed on Wednesday.
Stockpiles rose 8 percent from August to 2.27 million tons, the highest since October 2019, according to the median estimate of nine traders and analysts polled by Reuters.
Output in the world’s second-largest producer rose for a fourth consecutive month. It grew 2 percent to 1.76 million tons.
Exports rose 8 percent to 1.41 million tons as top buyer India stocked up on the edible oil ahead of the Diwali festival in October.
India’s imports of palm oil jumped in September to their highest in a year, boosted by strong demand for the tropical oil ahead of the festival season and a steep discount compared to rival oils.
Demand for palm oil has been subdued as tough COVID-19 restrictions and intermittent lockdowns in key importer China hurt consumption levels, weighing on the benchmark futures contract.
Investors will watch for any announcement on an easing of China’s zero-COVID policy during its ruling Communist Party’s national congress beginning Oct. 16, a Kuala Lumpur-based analyst said.
