Malaysia's palm oil stocks increased slightly at the end of May from the previous month, as growth in production outpaced exports, according to data from the country's palm oil board (MPOB).
Total Malaysian palm oil inventories rose to 1.75mn t at the end of May, a 0.5pc increase from April. Crude palm oil production rose by 14pc on the month to 1.7mn t, as peak harvest season commenced.
Market participants watch palm oil stock levels to gauge supply-demand dynamics. Malaysia's monthly releases are tracked more closely, as data on its palm oil industry are considered the most reliable. The country is the second-largest palm oil producer globally after Indonesia.
The country's palm oil exports rose by 12pc from April to 1.38mn t in May, according to the MPOB. Exports rose despite a recent increase seen in palm oil prices, which has caused its discount to rival soybean, sunflower and rapeseed oils to narrow, and has driven a decline in sales to some price-sensitive markets like India.
Palm kernel production rose by 11pc on the month to 408,000t, while output of crude palm kernel oil rose by 26pc to 194,000t.
Exports of biodiesel fell by 41pc on the month to 20,900t. External sales of oleochemicals rose by 10pc on the month to 257,400t, while exports of palm kernel oil moved up slightly from April to 87,800t.
