Malaysia’s palm oil stockpiles fell by 7.1% in June compared with May as exports gained.
According to the latest monthly statistics released by the Malaysian Palm Oil Board (MPOB) yesterday, inventories fell 110,889 tonnes to 1.45 million tonnes in June from a revised 1.56 million tonnes in May.
Stockpiles of crude palm oil went down 12.06% to 715,821 tonnes from 813,986 tonnes in May while processed palm oil stocks decreased to 735,613 tonnes from 748,337 tonnes previously.
According to MPOB, production increased 2.5% to 1.42 million tonnes in June from a revised 1.38 million tonnes in May.
Crude palm kernel oil production fell to 152,295 tonnes from 157,982 tonnes previously while palm kernel cake production went down to 168,884 tonnes from 174,870 tonnes.
An analyst said the drop in palm oil stock level amid a slightly higher production meant that there would be more demand and should push the price up. He said palm oil demand usually picked up in the third quarter.
However, the analyst said the recovery in production was lower than expected as yields were still lagging.
Meanwhile, independent cargo surveyor Intertek reported yesterday that palm oil exports for the first 10 days of July were up 9% to 474,928 tonnes compared with 435,148 tonnes in the same period in June.
The data from MPOB showed the country’s exports of palm oil rose to 1.44 million tonnes in June, 5.51% higher month-on-month.
However, exports of palm kernel oil declined 46.46% to 60,227 tonnes in June from 112,480 tonnes in the preceding month while palm kernel cake fell to 178,298 tonnes from 182,618 tonnes before.
Oleochemical exports rose 8.61% to 192,259 tonnes from 179,772 tonnes.
Source: The Star