Malaysian Palm Oil Stockpiles at Six-Month High as Exports Drop

Sept. 10 (Bloomberg) -- Palm oil stockpiles in Malaysia, the world’s second-largest producer, rose to a six-month high in August after production climbed and exports declined.

Inventories of the world’s cheapest edible oil gained 6.2 percent to 1,415,109 metric tons in August from July, according to a statement from the Malaysian Palm Oil Board today. That’s the highest level since February.

The rise in stockpiles may help to arrest a rally in palm oil futures, which have gained 31 percent this year on the Malaysia Derivatives Exchange amid concern that drought damage to the soybean crop in South America has cut oilseed supplies. Both palm oil and soybean oil may be used for cooking.

Malaysia’s palm oil production rose 0.2 percent in August on month to 1,494,764 tons, the highest level since a record set in November last year, according to today’s data. Exports fell for the first time in four months, dropping 9.5 percent to 1,316,466 tons, the report showed.