Malaysian palm oil exports expected to fall

Malaysian palm oil exports expected to fall

KUALA LUMPUR (Reuters): Malaysian palm oil exports are expected to be lower over the next few months due to high prices and because major customer countries are harvesting their own oilseed crops, dealers and industry sources said on Friday.

The expectation of weak overseas demand was signaled by the low export estimates for the first 20 days of November.

Cargo surveyor Societe Generale de Surveillance on Friday estimated Malaysia's exports for Nove.1 to 20 at 380,918 metric tons, down sharply from 546,171 tons in the corresponding period last month.

"This is the time when exports are low. Exports will remain small in coming months," an official at a trading firm in Kuala Lumpur told Reuters.

"Those major buyers like India and Pakistan have their own oil at home as this is harvest time for their domestic crops," he said.

He and other traders said imports to India would be less in the next two months.

"Fearing some damage to the crop and concerned over a delay in domestic harvest, the Indians had bought as much as possible in recent months to cover their positions. I feel they have a large carry-over stock in India at the moment," he said.

Traders estimated that India would buy about 60,000 tons in November and 65,000 to 75,000 tons in December compared with over 100,000 tons in other recent months.

The traders also said high palm oil prices also drove many buyers to the sidelines.

Malaysia's refined bleached deodorized (RBD) palm olein was quoted at $695 a ton f.o.b while the benchmark, third month February futures contract on the Commodity and Monetary Exchange (Commex) at 2,285 ringgit a tonne at midday close on Friday.