August palm oil inventory rises on weak exports

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 1 percent at 2,191 ringgit ($537.80) a tonne at the end of the trading day. Trading volume stood at 49,614 lots of 25 tonnes each at the close of trade.

PETALING JAYA: Malaysia’s palm oil stocks rose 12% month-on-month (m-o-m) and 28% year-on-year (y-o-y) in August on the back of weak exports, despite lower CPO production during the month.

Exports fell 8% m-o-m and 26% y-o-y to 1.1 million tonnes last month, representing the lowest monthly palm oil exports for the year-to-date, and the lowest for the month of August since 2002.