Palm oil production in the countries of the leaders of this region is recovering from the dry weather conditions, provoked by the climatic phenomenon El niño. In the beginning of this year, the weather factor to ensure stable growth of export prices of Malaysian palm oil, which reached its peak in April - $ 720./ton.
Now, however, high stocks of palm oil producers and major importers (India, China), buying him a considerable amount before transition El Nino in the active phase, putting pressure on prices, reports Agrimoney.
Since the beginning of June, the price lost an average of 15%, with additional pressure has had a round of decline in the soybean market along with a more substantial recovery in palm oil production in Malaysia and Indonesia than previously expected. The demand from importers for oil manufacturers remained at a low level.
In June, the production of palm oil like in Malaysia and Indonesia, grew on average by 12% compared to the previous month. While export sales declined over the same period to its lowest level since 2008. in Malaysia 12% Indonesia 16% compared to may volumes.
In addition, the Malaysian government continues to delay the adoption of new content standards for palm oil in biofuel production, which could increase his monthly consumption and provide some support to prices.
Translated by service "Yandex.Translation"
