Malaysia's October palm oil inventory could exceed 2 million tonnes, on the back of higher production, Commodities Minister Peter Chin said on Friday. Palm oil stocks probably rose 4.1 percent to a near-record level of 2.03 million tonnes as production posted steady growth despite a major holiday season, outpacing a weak increase in exports, a Reuters poll showed on Thursday.
Malaysia's crude palm oil output is expected to top 18 million tonnes next year, Chin said. But pressure from environmental groups has squeezed Malaysia's biodiesel exports to the European Union countries and the United States by 20 percent so far this year, he added. "We can produce 1.6 million tonnes of biodiesel and export it to the rest of the world," Chin said, referring to Malaysia's total biodiesel production capacity.
"But because of issues of sustainability and the environment that (the non-governmental organisations) play up, the countries that used to buy from us are scared. There are less orders." Exports of biodiesel so far this year have reached only 80,000 tonnes, a fifth lower than the 100,000 tonnes exported last year.
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