Malaysia: Palm oil stockpile in Malaysia seen rising in July

• Aug 09, 2016

Malaysia: Palm oil stockpile in Malaysia seen rising in July

Friday, 5 August 2016 – Palm oil inventories in Malaysia likely rose for a second month in July, in the first back-to-back gain since November, as production continued to recover from stresses caused by El Nino weather.

Inventoriesrose 2.2 percent to 1.82 million metric tons in July from June, according to the median of eight estimates in a Bloomberg survey of planters, traders and analysts. Productionof crude palm oil likely rose 3.9 percent to 1.59 million tons, its fifth straight monthly rise. Exports likely surged 15 percent to 1.3 million tons, which would be the biggest climb in four months. The Malaysian Palm Oil Board will release official data by August 10.

Anticipation of higher export demand and prospects for La Nina weather in coming months have boosted palm oil futures 5.5 percent so far this week, putting them on track for the best week since February. While production in the world’s second- largest grower is recovering from El Nino-induced dry weather, board data show first half crude palm oil output was 16 percent lower than last year. For July, production of 1.59 million tons would still be the lowest for the month since 2010. Read More?