KUALA LUMPUR (Aug 10): Malaysian palm oil inventory rose more than expected in July from a month earlier as output increased while exports fell.
In a statement today, the Malaysian Palm Oil Board (MPOB) said inventory, comprising crude palm oil (CPO) and processed palm oil, rose 5.29% to 2.27 million tonnes.
CPO output increased 2.93% to 1.82 million tonnes. MPOB said the increase came mainly on higher production in Peninsular Malaysia and Sarawak as output from Sabah fell.
Palm oil exports declined 5.61% to 1.6 million tonnes from a month earlier.
Inventory had grown more than market forecast as exports of the commodity declined faster than expected.
Reuters reported that the inventory rise was against a median forecast by a Reuters poll for inventories to grow 1.6% to 2.19 million tonnes, with exports of the tropical oil seen falling by 6.9%.
In June, MPOB said inventory fell 4.31% from a month earlier while CPO production declined 2.58%. Palm oil exports rose 5.08%.