Malaysian palm oil stockpiles likely rose in October as production increased to its highest in a year, even as export demand surged for the edible oil, according to a survey.
Inventories during October in the world's second-largest palm oil producer are forecast to rise 2.8% from September to a seven-month high of 2.52 million tonnes, according to a median estimate of seven planters, traders and analysts polled by Reuters.
Stockpiles were largely expected to rise even as exports jumped 13.1% to 1.59 million tonnes due to higher demand from China because of a seasonal climb in output.
Palm oil exports to India, the world's biggest edible oils exporter, fell in October due to a boycott of Malaysian palm oil by Indian buyers over critical comments by the Malaysian Prime Minister on India's actions in Kashmir.
The poll pegged October production at 1.88 million tonnes, up 2% from the previous month and the highest in a year.
Official palm oil data will be published by the Malaysian Palm Oil Board ?on Nov. 11.