Malaysia’s palm oil stocks hit 4-month high in June on weak exports

Malaysia's palm oil stocks reached a four-month high in June, rising by 4.35% to 1.83 million metric tons, as reported by the Malaysian Palm Oil Board. This increase was attributed to a faster decrease in exports than production. Crude palm oil production fell by 5.23% to 1.62 million tons, while exports dropped by 12.82% to 1.21 million tons. The rising stocks could put downward pressure on benchmark futures.

Malaysia’s palm oil stocks surged to a four-month high in June, driven by a steeper decline in exports compared to production, the industry regulator said on Wednesday. The rise in stocks in Malaysia, the world’s second-largest palm oil producer after Indonesia, would put pressure on benchmark futures, which fell more than 4% in two days. Malaysia’s palm oil stocks at the end of June rose 4.35% from May to 1.83 million metric tons, the highest since February, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil production declined 5.23% from May to 1.62 million tons, while palm oil exports plunged 12.82% to 1.21 million tons, A Reuters survey forecast inventories at 1.83 million tons, with output at 1.62 million tons and exports at 1.24 million tons. “Stocks rose as expected, but the buildup is concerning. Palm oil inventories are increasing even before the peak production season begins in August,” said a ...