Malaysia Palm Oil Stocks Hit Five-Month High Amid Rising Exports

Malaysia's palm oil stockpiles have reached their highest level in five months. According to data from the Malaysian Palm Oil Board (MPOB), July palm oil stocks rose by 3.32% month-on-month, reaching a total of 2.63 million metric tons.

This is despite crude palm oil production increasing by 9.41% from June to 1.79 million tons, its highest level in seven months. Palm oil exports also surged by 14.5% to 1.39 million tons in July.

Anilkumar Bagani, commodity research head of Sunvin Group, noted that 'rising stocks are bearish,' but their impact on prices may be limited due to factors such as Indonesia's B50 implementation and El Niño's effect on production.

However, Paramalingam Supramaniam, a director at Selangor-based brokerage Pelindung Bestari, pointed out that palm oil remains relatively attractive to India, the largest importer, where demand is expected to increase in the coming months due to the festival season.