Palm Oil: increased 5.1% to 3771 MYR/T, as data from cargo surveyors showed that exports from Malaysia dropped between 2.7% and 21% in the first 10 days of July compared to those from June.
However, palm oil futures prices were not far from their lowest since June 2021, amid strong inventories and weaker export demand from major producers. Industry research group CGS-CIMB expects Malaysian palm oil stocks to rise by 21.4% monthly to 2 million tonnes in July, supported by higher production and lower exports.
The figures would extend the 8.8% increase from June that took inventory levels to seven-month highs. Meantime, top palm oil producer Indonesia increased its export quota and now allows palm oil producers to export seven times the amount it sold domestically.
It 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.