Malaysia’s Palm Oil Stocks Surge
Malaysia’s palm oil stocks hit 1.78 million tons in July of this year - the highest level since April 2016 and almost 150,000 tons more than industry analysts expected. The increase in supply reflects a 16.8 percent jump month-on-month, which is the fastest rate of growth since August 2014.
However, exports for the world’s second biggest palm oil producer and exporter have not lived up to expectations, coming in below 1.4 million tons for a second straight month, and falling 35.000 tons short of expectations.
Production usually increases in July, and this year is no different with Malaysia’s output reaching 1.83 million tons, the highest production level for the month of July on record for the country, and far exceeded expectations of 1.68 million tons.
Despite the high output, in the first 10 days in the month of August, Malaysian palm oil exports continued to decline, falling 1.4 percent month-on-month, according to cargo surveyor, Intertek.