Palm oil futures had a second weekly loss yesterday as output grew faster than exports in Malaysia, the second- biggest producer, expanding the country’s stockpiles by 2.5 per cent in June.
Production climbed 3.6 per cent 1.446 million metric tons in June, pushing inventories to 1.41 million tons from 1.37 million tons in May, according to Malaysian Palm Oil Board data released today. Exports climbed 3.1 percent to 1.27 million tons.
“It’s no secret that we’re entering the higher production period,” Carey Wong, an analyst at OCBC Investment Research, said by phone from Singapore yesterday.
“The big unknown is the demand.”
Palm oil for September delivery dropped 1.8 per cent to RM2,010 a metric ton on the Malaysia Derivatives Exchange, after losing as much as 2.2 per cent. The most-active contract lost 7.6 per cent this week, extending last week’s 6.2 per cent drop.
Malaysia’s palm oil exports from July 1 to 10 increased to 419,100 tons, up from 289,437 tons over the same period in June, independent surveyor Intertek said yesterday.
Declining crude oil prices may limit any gains, as lower oil prices reduce demand for biofuels made from vegetable oils and increase concern that palm oil output will outpace consumption, Wong said.
Crude oil for August delivery slipped as much as 1.5 per cent to US$59.52 a barrel in New York.
Pam oil futures may drop as much as 15 per cent in the coming months as Indonesia and Malaysia, the biggest producers, enter the peak output season, Dinesh Shahra, managing director of Mumbai-based Ruchi Soya Industries Ltd., said July 3.
Third- quarter output is typically the highest every year, Ivy Ng, a plantation analyst at CIMB Investment Bank Bhd said July 3.
More Recent Palm Oil News 
- Asian Crude Palm Oil Ends Up; March 1-20 Exports Expected To Rise
- Crude Palm Oil Ends Down On Weak Crude Oil, Soyoil
- Nestle Drops Indonesia’s Sinar Mas As Palm Oil Supplier
- No Reason To Fear Investor Interest: Ruchi Soya
- South East Asia Dry Spell Thins Palm Oil, Rubber Supply; Threatens Rice
- Crude Palm Oil Ends Up On Higher Soyoil, Crude
- Crude Palm Oil Ends Marginally Lower In Choppy Trade
- Palm Oil Declines on Crude, South American Soybean Crop Concern
- Crude Palm Oil Stumbles On Long Liquidation, Profit-Taking
- “Green” Palm Oil Output May Double As Prices Rise
- Malaysian Windfall Tax Capping Palm Oil Price Rise
- Palm Oil Refineries Should Venture Into More Downstream Value-Added Products
- Follow Palm Oil HQ On Twitter
- Soyoil Subsidies Create Artificial Price, Says MPOC
- Crude Palm Oil Ends Down; Weak Cash Demand, Long Liquidation
PRO Palm Oil Live Market News
- European Veg Oil PM Palm Oil & Lauric Oil Prices- Mar 19
- Indian Edible Oil Prices Fall On High Stocks, Rapeseed Supply
- CBOT Soy Outlook: Mixed; Tightening Supplies Support Old Crop
- European Veg Oil AM Palm Oil & Lauric Oil Prices- Mar 19
- India Commodity Prices Including Palm Oil – Agriculture
- India Soybean Futures End Up 1.2% On Firm Palm
- Asian Crude Palm Oil Ends Up; March 1-20 Exports Expected To Rise
- Indonesia Astra Agro Sells 4,000 Tons Crude Palm Oil (CPO) Friday
- Indonesia PT KPB Sells 7,500 Tons Crude Palm Oil (CPO) At Auction Friday
- China Soybean Futures Settle Higher; CBOT Buoys Sentiment
- BMD Crude Palm Oil (CPO) Futures Rise; March 1-20 Exports Likely Up
- China Dalian Commodity Exchange Grain Stocks, Mar 19
- India Commodity Prices Including Palm Oil – Agriculture
- China Dalian Grain Futures Closing Prices, Volume
- CORRECT (3/18): Nestle Drops Indonesia’s Sinar Mas As Palm Oil Supplier