KUALA LUMPUR, June 14 ― Malaysia’s crude palm oil (CPO) export volume is expected to ease month-on-month (m-o-m) in June, said Maybank Investment Bank (Maybank IB).
In a research note today, the investment bank said the projection is based on the lifting of Indonesia’s export ban at the end of May, which in turn, is likely to result in a pick-up in Malaysian Palm Oil Board’s (MPOB) inventory in June.
“Preliminary Malaysian export estimates for shipments in the first 10 days of June 2022 by independent cargo surveyors Amspec and Intertek were a mixed trend at 363,732 tonnes and 415,348 tonnes (-3.0 per cent/+6 per cent m-o-m), respectively.
“Barring any unexpected weather anomaly, we anticipate rising global supplies of oilseeds and CPO in the second half of 2022 (2H22) to pressure CPO price on the downside,” Maybank IB said.
It noted that with relatively normal-to-good weather, production of oilseeds in the Northern Hemisphere might turn out strong in 2H22, after two years of unfavourable weather and crop yield.
“Likewise, we expect a seasonally stronger palm oil output in 2H22. Hence, we expect CPO price to weaken in 2H22 compared to the same period last year.
“In the near-term, CPO price downside is buffered by the strength of competing oil prices as CPO price is now trading at decent discounts to competing oils,” it added. ― Bernama
