Malaysian Palm Oil: futures decreased 5.03% to 3909 MYR/T, as supply is outpacing demand. Inventories in Malaysia, the world’s second-largest producer, rose 8.76% from the previous month to 1.66 million tonnes, its highest since November, according to the Malaysian Palm Oil Board.
Meantime, crude palm oil production climbed 5.76% to a seven-month high of 1.55 million tonnes. Further, top palm oil producer Indonesia increased its export quota and now allows palm oil producers to export seven times the amount it sold domestically, up from five times previously, to reduce high domestic inventories.
The world’s largest palm oil producer also plans to implement a 35% palm oil mix in bio-diesel by the end of July and is considering cutting its palm oil export levy to encourage more shipments.