For the first time in four months, Malaysian palm oil stocks are projected to decrease in July, according to a Reuters survey. The expected inventory is estimated at 1.80 million metric tons, reflecting a 1.17% decline from the end of June.
This anticipated drop comes after three consecutive months of rising stocks, driven by elevated beginning stocks, increased production, and slightly higher imports, which have led to a supply outpacing demand. Sathia Varqa, co-founder of Palm Oil Analytics, noted that shipments of palm oil products are estimated to rise by 26.1% month-on-month to 1.52 million tons in July.
Crude palm oil (CPO) production is also expected to increase, estimated at 1.82 million tons, marking a 12.7% rise from the previous month. July is traditionally a peak production month, contributing to this growth.
The Malaysian Palm Oil Board (MPOB) is set to release its monthly palm oil data on August 12, which will provide further insights into the market dynamics.