According to a Reuters survey, palm oil inventories in Malaysia are projected to increase for the third consecutive month in June. The survey polled 12 traders, planters, and analysts.
The key findings are:
Palm oil stocks in Malaysia were estimated to reach 1.83 million metric tons, up 4.53% from May-end.
Exports of palm oil products were estimated to have declined by 10% month-on-month to 1.24 million tons in June.
The decline in exports was attributed to shipping problems, such as space constraints in containers, which are not expected to ease quickly. Global port congestion has reached an 18-month high, with 60% of ships waiting at anchor located in Asia.
Crude palm oil (CPO) production was seen declining for the first time in four months, dropping 5% month-on-month to 1.62 million tons.
The decline in production was due to aging trees, poor yields, and volatile weather, which also complicated harvesting.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on July 10, which will provide official figures and further insights into the state of the country’s palm oil industry.
The rising palm oil stocks, coupled with the decline in exports and production, suggest that Malaysia’s palm oil market is facing some challenges at the moment. The global supply chain disruptions and weather-related issues appear to be impacting both the demand and supply sides of the industry.