Palm oil stocks in Malaysia will amount to 2.1 million tons by the end of the year, according to estimates by the state agency Bernama. This means that stocks are at a similar level to a year ago.
The agency's experts expect national palm oil consumption to increase from the current 18% to 25% with the start of the B20 biodiesel program. The government would be happy if stocks were to fall further to 1.5 to 2 million tons. Producer prices could then stabilize at 3,000 renminbi per tonne.
Malaysia is the world's second largest palm oil producer. Last year in December, 7% of the national production volume was used for the production of biodiesel; now it is 10%.
The B20 biodiesel program is to be introduced in several stages in 2020. This will benefit 70% of the Southeast Asian country's palm oil plantations. These are plantations that are certified as sustainable.
Source
HANSA Terminhandel
