MPOB March Monthly Report Outlook: Material Storage at Ma Zong Oil Depot Lowers to an 8-month Low in March

On April 4th, according to a Reuters survey, despite increased production and export growth, Malaysia's palm oil inventories are expected to drop to an 8-month low by the end of March. According to a Reuters survey of 10 traders, growers, and analysts, palm oil inventories are expected to decline for the fifth consecutive month, dropping to 1.79 million tons, a decrease of 6.65% compared to the previous month. At the same time, driven by the demand for Ramadan that began in mid March, exports are expected to surge by 21.22%, reaching 1.23 million tons. Paramalingam Supramaniam, head of Pelindung Bestari, a brokerage firm headquartered in Selangor, said, "We see an increase in exports in March, and we expect to continue the same trend in April and May." According to data, production in March is expected to increase by 9.76% month on month, reaching 1.38 million tons, the first increase since November last year. Supramaniam said, "It is expected that the El Ni ñ o weather forecast will reach its peak in May, which will pave the way for possible stable inventory during July, August, and September." The Malaysian Palm Oil Board (MPOB) will release its monthly palm oil data on April 15th.