The race to boost output despite Covid-19
■ Malaysian palm oil stock levels rose 1.5% mom to 1.57m tonnes as at end-May 2021. This is 3% below our forecast due to higher domestic usage.
■ Rising Covid-19 cases have delayed the government’s decision on potentially
allowing the return of foreign workers to help alleviate labor shortage issues.
■ This could pose a downside risk to 3Q21 CPO supplies. We project palm oil
stocks rising by 7% mom to 1.68m tonnes by end-Jun 2021F.