Lackluster export demand of Malaysia anticipated to weigh on BMD Palm oil futures

Palm Oil (CPO)

Published on

According to the export agencies, Malaysia witnessed a dip in palm oil exports from the 1st to the 25th of February. The weakness in export data can be attributed to excess stocks of palm oil with the major importers of palm oil, India and the narrowing discount of palm oil over other rival oils in the international market.

As per Amspec, the export of palm oil went down by 14.28% from 9,86,359 tonnes in January to 8,63,108 tonnes in February. Whereas, as per ITS exports are down by 10.65% from 10,52,734 tonnes in January to 9,51,409 tonnes in February. According to SPPOMA reports the production of palm oil on the other hand is also showcasing a decline of 1.70% for the period of Feb 1-25th compared to the previous month's same period. The fall in palm oil production is marginal as per the reports of SPPOMA, hence, the lackluster export demand is expected to weigh on BMD Palm oil futures in the upcoming days.