Singapore — Malaysia exported 66,197 mt of PME to various destinations during July, an increase of 58.51% from June and the highest volume of PME exported from Malaysia in one month since records dating back to 2013, according to data released by the Malaysian Palm Oil Board or MPOB on Friday.
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A producer said the shipments of PME included cargo that had been delayed from June loadings, and could represent the maximum capacity of PME exportable from Malaysia in one month.
Malaysian palm oil inventories rose 1.26% on the month in July to 2.21 million mt, ensuring that Malaysian palm stocks have remained above the 2 million mt mark since August 2017, according to data.
But a Singapore-based market source said market analysts had been expecting stocks to hit 2.4 million mt, so the lower figure was somewhat of a relief for the market.
Still, the CPO futures on Bursa Malaysia seemed to take the official inventory number in its stride and there was no marked change in Bursa futures on Friday.
Palm oil production in Malaysia rebounded in July, rising 12.79% on the month to 1.5 million mt.
But Malaysian palm oil production is still not as high as Indonesian production this year, the source said, since Indonesian plantations are overperforming.
Meanwhile, Malaysian palm oil exports underperformed during July as well, with a rise of only 6.75% on the month to 1.21 million mt.
Indonesian CPO was on average at a $20/mt discount to Malaysian CPO, which was diverting sales to Indonesia, said the source. India imported 750,000 mt of CPO during July, he added, most of it sourced from Indonesia.
Malaysia exported 131,491 mt of CPO to India during July, down from the 159,724 mt exported during June, the data showed.
--Samar Niazi, firstname.lastname@example.org
--Edited by Jeremy Lovell, email@example.com