KUALA LUMPUR: Malaysia's palm oil stocks rose to a five-month high in July, according to data from the Malaysian Palm Oil Board (MPOB) released on Monday. Inventories increased 3.32% from the previous month to 2.63 million tonnes, the highest level since February.
The rise was driven by stronger production, which outpaced export growth. Crude palm oil production climbed 4.1% in July to 1.83 million tonnes, while exports rose 2.1% to 1.42 million tonnes, based on MPOB data.
Market analysts had expected a smaller stock build, with a Reuters survey forecasting inventories at 2.57 million tonnes. The higher-than-expected stocks could weigh on benchmark palm oil futures, which have been trading in a range amid concerns over global demand and competition from other edible oils.
Despite the increase, palm oil stocks remain below the levels seen in the same period last year, when inventories stood at 2.73 million tonnes. The MPOB data also showed that imports of palm oil into Malaysia fell 12.4% in July to 80,000 tonnes.
