Malaysia’s Palm Oil Inventories Expected to Reach Five-Month High

Malaysia’s palm oil inventories at the end of July are predicted to reach a five-month peak due to higher production, despite an increase in exports. Stockpiles are expected to rise for the third consecutive month, expanding by 4.2% from June to reach 1.79 million metric tons.

Output in Malaysia, the world’s second-largest producer of palm oil, is projected to rise by 9.2% to 1.58 million metric tons, the highest level seen since December. Analysts believe that palm oil inventories will increase slightly in July due to the seasonal high output trend during this period.

However, there is optimism that the recovery in production and export growth will result in stocks increasing at a slower pace going forward. Factors such as the intensity of the El Nino weather phenomenon will also play a role in determining the direction of palm oil prices.

The Malaysian Palm Oil Council expects Malaysia’s benchmark crude palm oil prices to trade within a range of 3,700 ringgit to 4,200 ringgit in the second half of 2023. The long-term outlook for palm oil prices remains positive, according to the state agency.

The Malaysian Palm Oil Board (MPOB) is scheduled to release its data on August 10th, which will provide further insights into palm oil production, exports, and stocks for the month of July.

Tags: exports, export, prices, Crude palm oil, Outlook, Production, Malaysia, palm oil, stockpiles, predicted