Malaysian palm oil exports fell in August on weak demand from India
Shipments from the world's second-largest producer totalled 1.3 million tonnes in August, according to analysts.
El Nino has raised concerns about potential reductions in palm oil production in Malaysia in the coming months, which could tighten supplies. Malaysia, the world's second-largest producer of the commodity, exported 1.3 million tonnes of palm oil in August, according to a Bloomberg survey of industry experts. This represents an 8% decrease from July.
Stockpiles of the tropical oil increased by around 6%, reaching the highest level since January. Palm oil prices have risen around 7% in the third quarter and are nearing a two-year high.
The El Niño weather pattern poses a threat to production in the months ahead, while Indonesia is diverting more of its palm oil to biofuels, contributing to tightening supplies. Lower-than-expected demand from India is also playing a role in the export decline. Anilkumar Bagani, head of research at Mumbai-based Sunvin Group, stated that demand was weaker than anticipated due to the availability of cheaper soy oil. Production is likely to have risen by 2% to 1.8 million tonnes, based on the survey.
Malaysia's Palm Oil Board is scheduled to release official August data by September 10.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Malaysian palm oil exports fell in August on weak demand from India freemalaysiatoday.com
