SINGAPORE (Sept 15): The worst is over for Malaysia’s palm oil plantations, according to a sector note by DBS Research published on Wednesday, forecasting output recovery and an export jump.
However, despite a 9% on-month increase in output in August, the recovery was still 10% below forecasts, says analyst Ben Santoso. This led to a cut of Malaysia’s full-year output forecast of 18.4 million MT, 2% below previous forecasts. September output is now expected to increase 18% on-month to 2 million MT.
August exports jumped 31% on month to $1.5 million MT, 17% above forecasts, according to Santoso. This was driven by shipments to India, China and Europe, with demand from India stoked by Diwali festivities. The demand is expected to continue for the rest of the year owing to the monsoon season.