Highlight Malaysia July CPO output, inventory rise on month, exports fall

by **Cals** Mon 11 Aug 2014, 22:47

Highlight Malaysia July CPO output, inventory rise on month, exports fall

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 11 August 2014 13:11

KUALA LUMPUR (Aug 11): Malaysian crude palm oil (CPO) output rose 6.11% month-on-month (m-o-m) to 1.67 million tonnes in July from 1.57 million tonnes in June, according to the Malaysian Palm Oil Board (MPOB).

In a statement posted on its website today, MPOB said palm oil inventory, comprising CPO and processed palm oil, rose 1.47% to 1.68 million tonnes from 1.66 million tonnes.

Palm oil exports, however, fell 2.32% to 1.45 million tonnes from 1.48 million tonnes.

The latest CPO output figure beat market forecast.

Last week, Reuters reported output in July would likely rise 4.9 percent to 1.65 million tonnes, based on the median of a survey of five traders, growers and analysts

The survey pegged Malaysia July end-stocks at 1.64 million tonnes, down 1.3 percent from June and at their lowest since March 2011 when stock was only 1.61 million tonnes.

Exports of palm oil were pegged at 1.45 million tonnes, down 2.1 percent from a month ago, according to the survey.

Reuters, quoting market participants, warned that the world's No.2 producer could record a strong rise in output in August onwards, potentially lifting palm stocks above the 2 million tonne mark in the next two to three months.

"I see production coming back strongly for August. We are heading towards 2 million stocks," the official said, adding that this level could be reached by September.