Tuesday, May 11, 2010

Plantation - Fall In Production And Exports, But Also In Stock Levels - 11/5/2010

Fall in production and exports, but also in stock levels. Malaysia’s CPO production fell back in Apr 10 by 5.8% mom, while exports also fell by 8.2% mom. Despite the larger drop in exports versus production, closing CPO stock levels fell to 1.62m tonnes in Apr (from 1.65m tonnes in Mar). As a result of the lower CPO stock levels, stock/usage ratio fell further to 8.8% (from 8.9% in Mar and versus the 7-year average of 9.1%). We expect this to moderate further for another 1-2 months, as the weak seasonal production period continues and as exports pick up further on an improved economic outlook, although this should start reversing subsequently, as we approach the peak seasonal production period.

Plantation - Fall In Production And Exports, But Also In Stock Levels - 11/5/2010

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