From: Terry Reilly
Sent: Friday, April 10, 2020 7:52:03 AM (UTC-06:00) Central Time (US & Canada)
Subject: March Malaysian Palm Oil S&D
FI DPF attached
March Malaysian palm oil production was higher than expected. At 1.397 million tons, it was 83,313 tons above a trade poll but 16 percent below March 2019. There are expectations the daily production rate will be lower on April due to temporally production shutdowns, but there are a few signs the situation is improving. March exports were higher than expected but larger than anticipated imports and weak domestic demand led to end of March stocks to increase from the previous month to 1.729 million tons, first monthly gain since September 2019. End February Malaysian palm stocks were revised up about 30,000 tons and remain lowest since June 2017. Export demand going forward looks weak and prices are expected to trend sideways to lower over the next 3-6 months.
Malaysia’s biggest palm oil producing state, Sabah, will reopen plantations and mills in six regions that don’t have any coronavirus infections. Sabah accounts for about one fourth of Malaysia’s palm oil production.
Malaysian palm oil futures ended the week 3 percent higher. On Friday the June futures contract closed 9 MYR higher to 2,313.
Senior Commodity Analyst – Grain and Oilseeds
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ICE IM: treilly1
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