Malaysian: Palm oil futures bottomed around MYR 4,051 per tonne, as signs of weak domestic export demand prompted investors to unwound some long positions following a massive rally that drove prices to an over one-month peak of MYR 4,500.
Exports of Malaysian palm oil products for August 1 – 15 fell almost 2% to 490,375 tonnes from the same period in July, independent inspection company AmSpec Agri Malaysia said.
Adding to the bearish outlook, Malaysia’s palm oil inventories in end-July likely increased to the highest in eight months due to higher production and rising imports.
On top of that, prospects of soaring exports from rival Indonesia have been capping much of the upside momentum.
The world’s top producer has allowed producers to ship nine times the amount sold domestically under the rule, up from seven times previously, attempting to clear the current high palm oil stockpiles.