Xinhua, Kuala Lumpur :
Malaysia’s palm oil exports are projected to grow about 20.5 percent month-on-month in March on stronger demand from India and China, said a research house Wednesday.
In a report, CIMB Research, based on estimates from cargo surveyor SGS and Amspec Malaysia, expects Malaysian palm oil exports to rise about 20.5 percent month-on-month in March.
The increases were mainly due to stronger demands from China, India and Pakistan as traders rushed to buy crude palm oil (CPO) from Malaysia ahead of the reinstatement of a 5 percent export tax on CPO effective April 1.
According to the report, China’s CPO demand is seen to grow 84 percent month-on-month; India and Pakistan’s demands are projected to surge 78 percent and 114 percent month-on-month respectively.
Findings from a survey of 25 plantation areas by the CIMB Futures team also revealed that Malaysian CPO output likely to grow by 6 percent month-on-month to 1.42 million tonnes in March.
Overall, the research house estimated that Malaysian palm oil inventories could decline by 12 percent month-on-month to 2.18 million tonnes as at end of March.
CIMB Research also said, the lower palm stockpile projected for March and concerns over lower soybean crops are expected to be supportive for CPO prices.
The CPO price is likely to trade in the range of 2,400 to 2,600 ringgit per tonne in April and to average at 2,700 ringgit per tonne in 2018, according to the report.
The U.S. Department of Agriculture in last week indicated that soybean planted area this year will be down 1 percent to 89 million acres.
Malaysia’s palm oil exports are projected to grow about 20.5 percent month-on-month in March on stronger demand from India and China, said a research house Wednesday.
In a report, CIMB Research, based on estimates from cargo surveyor SGS and Amspec Malaysia, expects Malaysian palm oil exports to rise about 20.5 percent month-on-month in March.
The increases were mainly due to stronger demands from China, India and Pakistan as traders rushed to buy crude palm oil (CPO) from Malaysia ahead of the reinstatement of a 5 percent export tax on CPO effective April 1.
According to the report, China’s CPO demand is seen to grow 84 percent month-on-month; India and Pakistan’s demands are projected to surge 78 percent and 114 percent month-on-month respectively.
Findings from a survey of 25 plantation areas by the CIMB Futures team also revealed that Malaysian CPO output likely to grow by 6 percent month-on-month to 1.42 million tonnes in March.
Overall, the research house estimated that Malaysian palm oil inventories could decline by 12 percent month-on-month to 2.18 million tonnes as at end of March.
CIMB Research also said, the lower palm stockpile projected for March and concerns over lower soybean crops are expected to be supportive for CPO prices.
The CPO price is likely to trade in the range of 2,400 to 2,600 ringgit per tonne in April and to average at 2,700 ringgit per tonne in 2018, according to the report.
The U.S. Department of Agriculture in last week indicated that soybean planted area this year will be down 1 percent to 89 million acres.
