Palm oil stock levels in Malaysia at the end of July rose for a third straight month but by a marginal amount of 0.68% from June to 1.73 million mt, data from the Malaysia Palm Oil Board (MPOB) showed Thursday.
The increment was smaller than the change seen from May to June and came as a stronger export performance eroded the firm increase in production, with the change in end-month stocks also coming in much lower than earlier industry expectations of around 4% as polled by newswires Reuters and Bloomberg.
Malaysian palm oil exports in July rose by 15.6% from June to 1.35 million mt – the second highest level seen this year – aided by strong buying from markets such as India and as palm oil has kept its competitiveness against rival soft oils after trading at a premium to its competitors earlier this year, making it a preferred option for buyers.
The level also surpassed export estimates from cargo surveyors which had put July shipments at 1.17-1.24 million mt, while industry estimates from newswire polls had pegged exports at around 1.27-1.28 million mt.
Crude palm oil (CPO) production in Malaysia in July also…
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