Palm Oil : futures were trading around the MYR 3,800 a tonne level, as prospects of more robust domestic export demand prompted investors to open new positions after a selloff earlier this month that sent prices to an over 14-month low of around MYR 4,500.
Malaysian palm oil exports during Sept. 1-10 rose between 9.3% and 16.2% from the same period in August, cargo surveyors’ data showed.
Still, any significant upside momentum should be limited by soaring production as the peak production season
has started while intensified competition from rival Indonesia has been hurting overseas shipments.
Adding to the bearish outlook, essential buyer China imposed new coronavirus-induced restrictions in several cities,
raising concerns over demand for the edible oil.
Meanwhile, the stocks “Overall, palm oil futures stocks increased 18.16 per cent m-o-m to 2.09 million tonnes from 1.77 million tonnes previously,” MPOB said.
Also As for production, it said CPO output increased by 9.67 per cent to 1.72 million tonnes in August versus 1.57 million tonnes in July.
It said palm kernel output was up by 10.57 per cent m-o-m to 424,234 tonnes from 383,669 tonnes in the preceding
month, while crude palm kernel oil production was 5.94 per cent higher at 191,347 tonnes against 180,612 tonnes in July.
Howerver, the MPOB said that palm oil export eased by 1.94 per cent m-o-m to 1.30 million tonnes from 1.32 million tonnes
in July, while palm kernel oil export improved by 32.58 per cent m-o-m to 101,674 tonnes from 76,689 tonnes previously.
The agency said Malaysia’s CPO import in August 2022 surged 135.14 per cent to 836 tonnes from 356 tonnes in July,
while processed palm oil imports increase 11.02 per cent m-o-m to 144,616 tonnes, and total palm oil imports
rose 11.36 per cent m-o-m to 145,452 tonnes.