KL's July palm oil output 823,000 tons

KL's July palm oil output 823,000 tons

KUALA LUMPUR (Reuter): Malaysia's palm oil output in July was estimated to be 4.5 percent higher at 823,000 tons against 787,807 tons in June, private crop forecaster Ivan Wong said yesterday.

Wong estimated exports in July at 705,000 tons against Malaysian Palm Oil Registration and Licensing Authority (PORLA) at 612,124 tons.

End-July stocks were projected at 805,000 tons against PORLA's 786,123.

Wong said because of a drop in the oil extraction rate (OER), crude palm oil production rose marginally less his previous estimate. "It rose 35,000 tons or 4.5 percent to an estimated 823,000 tons," he said.

Wong said exports were boosted by a surprisingly large increase of shipments to countries in West Asia. They rose by around 80,000 tons to 145,000, with Egypt alone raising its offtake by 50,000 tons to an estimated 68,000 tons.

Wong said the robust export number helped moderate the seasonal rise in palm oil stocks to an estimated 805,000 tons.

The healthy exports enabled refiners to reduce their stocks of PPO to around 340,000 tons from 381,000 at end-June.

"We are maintaining our projections of a month-to-month build- up in palm oil stocks of close to 100,000 tons in August- October," Wong said.

He added that Malaysian refiners could not raise product prices because of keen competition from Indonesia whose currency also weakened against the dollar.