Rising Malaysian palm oil stocks pressure prices to 4-year low
Malaysian palm oil production for 2012/13 is forecast at a record 19 million tons and, despite record exports during October 2012-February 2013, stocks totaled 2.4 million tons in February—an all-time high for the month. With Indonesia's palm oil stocks reported to be even larger, the current oversupply has forced crude palm oil prices down by 23 percent from a year ago to a 4-year low. Malaysian palm oil exports in 2012/13 are forecast at 17.2 million tons, compared with 16.6 million last year, as palm oil exports from Malaysia and Indonesia counter stagnant global production of other vegetable oils. India—the world's largest market for vegetable oil—saw its 2012/13 palm oil imports forecast rise to 8 million tons, up from 7.5 million tons the previous year. This chart can be found in the Oil Crops Chart Gallery, with accompanying analysis in the Oil Crops Outlook: March 2013.