palm oil

Palm Oil: Malaysia To Export Over 16 Million Tons Of Palm Oil In 2022

Mintec Global
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About 7.2 million tons of palm oil were sold by Malaysia to foreign markets in the first half of this year. The Malaysian Palm Oil Council (MPOC) stresses that the product supply from the country in the second half of the year is typically 20-25% higher than in the January-June period.

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“Based on these estimates, we expect Malaysian palm oil exports to be slightly more than 16 million tons in 2022,” MPOC said.

The Council also stressed that the removal of the export duty on palm oil in Indonesia before the end of the summer would undoubtedly affect supplies of Malaysian palm oil, as the price of a competitor is likely to be more attractive.

“However, it should be noted that most transactions were concluded several months in advance, so exports of Malaysian palm oil will remain stable “, MPOC.

In terms of monthly exports, Malaysia exports, on average, about 1.4 million tons of palm oil abroad – every 30 days, this figure can fluctuate between 12 and 15%, according to analysts of the Council.

At the same time, Malaysia considers importers from India as the primary buyers of palm oil. According to MPOC, 3.59 million tons of palm oil were shipped in that direction in 2021, accounting for 23% of the total export of the product from the country.

“India prefers to import crude palm oil (CPO) for further processing, and CPO prices in Malaysia tend to be higher compared to other countries. However, the recent decline in global palm oil prices is expected to boost demand from India, where total palm oil imports are down 12% in the first half of 2022 MPOC, according to the Solvent Extractors’ Association of India (SEA).