Lower palm oil stocks and higher exports to support CPO prices

Malaysian palm oil futures declined on Monday evening, charting a second session of decline in three, as the market was pulled down by weaker demand and overnight losses in U.S. soyoil.

PETALING JAYA: Lower-than-expected palm oil stocks on the back of higher-than-expected exports in July 2018 is expected to be supportive of crude palm oil (CPO) prices in the short term.

Malaysia’s palm oil stocks grew 1% month-on-month (m-o-m) and 24% year-on-year (y-o-y) to 2.22 million tonnes as at end-July 2018, coming in 5% and 9% below Bloomberg and Reuters’ poll estimates.