Palm oil stocks set to peak, CPO prices at turning point
KUALA LUMPUR: Malaysian palm oil inventories are expected to peak in October after rising for a sixth consecutive month in September, potentially marking a turning point for crude palm oil (CPO) prices, according to Public Investment Bank Bhd (PublicInvest).
Malaysian palm oil inventories are set to peak in October, signaling a potential turning point for crude palm oil (CPO) prices, according to PublicInvest. The company predicts inventories will surpass three million tonnes in September, the highest since 2018, as demand decreases in China, Europe, and the Middle East during the peak production season.
Meanwhile, Indonesia's palm oil exports surged by 35% month-over-month, while Malaysia's exports declined. PublicInvest expects Malaysian inventories to begin declining from November, with a more significant drawdown anticipated in mid-2027 due to the El Niño's impact on fresh fruit bunch (FFB) yields and CPO production. As inventories peak, CPO prices are expected to rise, with the firm maintaining an "Overweight" stance on the plantation sector, citing the potential effects of El Niño and higher crude oil prices on the industry.
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