MUMBAI, Sept 27 (Reuters) - Malaysian palm oil prices are expected to trade between 2,200 ringgit to 2,300 ringgit per tonne in the fourth quarter 2019, the country’s industry regulator forecast on Friday, as inventories may fall to 2 million tonnes by December.
Stockpiles of palm oil in Malaysia, the world’s second largest producer, rose to a near two-decade high of 3.2 million tonnes at the end of 2018. Inventories fell for a sixth month in August to 2.25 million tonnes. MYPOMS-TPO
“For the past few months stocks are going down. So what we hope is that if stocks reduce further to below 2 million tonnes,” said Ahmad Parveez Ghulam Kadir, director general of the Malaysian Palm Oil Board (MPOB) on the sidelines of a conference in India.
Ahmad added that while the MPOB expected palm oil prices to trade around 2,200 ringgit ($525) to 2,300 ringgit from October to December, “we are not comfortable with this price range,” he said.
“If possible, we would like to go to 2,500 ringgit.”
Benchmark palm oil prices fell to a six-week low this week on concerns of rising output and weak demand. It was at 2,151 ringgit a tonne, down 0.8%, at Friday’s midday break.
On exports, Ahmad forecast that Malaysian shipments in 2019 would increase at least 10% from a year earlier to 18.2 million tonnes, up from 16.5 million tonnes in 2018. MYPOME-PO
He revised downwards estimates for Malaysia’s production this year to 20 million tonnes, slightly below a previous estimate of 20.3 million tonnes, but forecast that production in 2020 would rise to 20.5 million tonnes.
$1 = 4.1900 ringgit Reporting by Rajendra Jadhav in Mumbai; writing by Emily Chow in Kuala Lumpur; editing by Christian Schmollinger