Malaysian palm oil exports continued to stutter in October as prices hit fresh highs amid tight global vegetable oil supplies.
Sales dropped by 15pc from October 2020 to 1.4mn t, according to data from the Malaysian Palm Oil Board (MPOB), despite biggest buyer India cutting import duties, as third-month palm oil futures on the Bursa Malaysia exchange broke through 5,000 ringgit/t ($1,201/t) for the first time.
Vegetable oil costs hit fresh highs across the board on the back of higher energy prices last month and subdued palm oil output in Malaysia, which continues to struggle with labour shortages.
Production was flat in October but fell by 8pc to 15mn t over the first eight months of this year compared with the same period in 2020. Foreign sales were down by 12pc to 12.7mn t over the same period.
Biodiesel exports were also hit by the higher feedstock costs, which largely priced palm-based grades out of the European market, especially given its warmer weather properties as consumer markets head into winter.
| Malaysian palm oil data ('000t) | ||||||||
| Oct '21 | Oct '20 | ± % y-o-y | Sep '21 | ± % m-o-m | Jan-Oct '21 | Jan-Oct '20 | ± % y-o-y | |
| Palm oil stocks | 1,834 | 1,573 | 17% | 1,756 | 4% | 1,577 (avg.) | 1,785 (avg.) | -12% |
| Palm oil production | 1,726 | 1,725 | 0% | 1,703 | 1% | 15,031 | 16,316 | -8% |
| Palm oil exports | 1,418 | 1,674 | -15% | 1,597 | -11% | 12,678 | 14,441 | -12% |
| Biodiesel exports | 19 | 23 | -17% | 52 | -63% | 292 | 3,315 | -91% |
| Source: MPOB | ||||||||
