CIMB Investment Bank Bhd said Malaysian palm oil inventory could have risen in June, amid weaker demand. Such dynamics could weigh down crude palm oil (CPO) prices, according to the research firm.
In a note today, CIMB analyst Ivy Ng said the research firm estimated palm oil inventory, comprising CPO and processed palm oil, to have risen 12% month-on-month (m-o-m) to 1.85 million tonnes as at end-June 2016.
"Findings from a survey of 21 planters by the CIMB Futures team revealed that Malaysian CPO output grew by 12.8% m-o-m to 1.5m tonnes in June 16. Palm oil exports
fell approximately 10% m-o-m, based on export statistics released by SGS and ITS.
"Overall, we estimate that Malaysian palm oil inventories may rise 12% m-o-m to 1.85m tonnes as at end-June 16, which is negative for prices. The official figures will be released on 12 July," Ng said.
fell approximately 10% m-o-m, based on export statistics released by SGS and ITS.
"Overall, we estimate that Malaysian palm oil inventories may rise 12% m-o-m to 1.85m tonnes as at end-June 16, which is negative for prices. The official figures will be released on 12 July," Ng said.
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