UPDATE 2-Malaysia's palm oil stocks hit six-month high as output surges

* Stocks jump 7.34% m/m, highest since Feb. * Output rises 2.87% m/m, highest since Oct. * Exports plunge 9.74 m/m to 1.53 mln T (Rewrites, adds comments of analyst, trader; paragraphs 7-10) By Danial Azhar and Rajendra Jadhav KUALA LUMPUR, Sept 10 - Malaysia's stocks of palm oil jumped in August to their highest in six months, as monthly production reached a nine-year high amid a slowdown in exports, the industry regulator said on Tuesday. The rise in stocks in Malaysia, the world's second-largest producer of palm oil after neighbouring Indonesia, could weigh on benchmark futures FCPOc3 already hovering near their lowest in seven months. Malaysia's palm oil stocks at the end of August rose 7.34% from the previous month to 1.88 million metric tons MYPOMS-TPO , the highest level since February, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil production MYPOMP-CPOTT gained 2.87% in August from July to 1.89 million tons, the highest since October, data from the industry regulator showed on Tuesday. Production for the month was the highest since 2015. Palm oil exports in the month fell 9.74% to 1.53 million tons, the MPOB said. A Reuters survey had forecast inventories at 1.86 million tons, with output seen at 1.89 million tons and exports at 1.5 million tons. The MPOB data is neutral for palm oil, as the stock levels have increased within the anticipated range and are lower than those of the previous year, said Anilkumar Bagani, the research head of Mumbai-based Sunvin Group. Production in September is also likely to stay on the higher side, but there is no sign yet of an uptick in demand from key markets such as India and China, which could squeeze prices, said a Mumbai-based trader. Exports of Malaysian palm oil products for September 1 to 10 fell 5.2% to 412,771 tons, independent inspection company AmSpec Agri Malaysia said on Tuesday. The market is closely monitoring Indonesia's biodiesel policy and potential changes in its duty structure, which will determine price movements in coming months, the trader said. Indonesia plans to lower export levy rates of the tropical oil to boost competitiveness against rival vegetable oils and raise farmers' income. Following is a breakdown of the Malaysian Palm Oil Board figures and Reuters estimates for August (volumes in tons) PALM/POLL : August 2024 August 2024 July 2024 August poll 2023 Output 1,893,859 1,895,000 1,840,999 1,753,472 Stocks 1,883,214 1,860,000 1,754,384* 2,110,980 Exports 1,525,115 1,500,000 1,689,710* 1,221,848 Imports 9,970 12,000 10,483 110,621 *indicates revised figures by the Malaysian Palm Oil Board <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Malaysia's palm oil stocks jump to six-month high Malaysia's palm oil stocks jump to six-month high https://reut.rs/3SB6fL1 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Rajendra Jadhav and Kuala Lumpur newsroom; Editing by John Mair and Clarence Fernandez) (([email protected] ; https://x.com/Rajendra1857))