Malaysia's Jul palm methyl ester exports soar to record 50,580 mt from 9,440 mt in Jun


July was a record month for PME exports from Malaysia to the EU at 50,580 mt, compared with a mere 9,440 mt exported in June, according to data released by the Malaysian Palm Oil Board on Thursday.

PME exports over January-July stood 185,629 mt, also a record high since 2013.

In 2015, Malaysia exported 178,943 mt of PME but exports fell to 83,581 mt in 2016.

With PME prices falling in 2017 amid lower palm oil prices, EU demand has soared in the first half of the year.

However, the industry is facing headwinds due to European trade policy uncertainty.

With news that the EU may be mulling cuts in duty on Indonesian PME, Malaysian producers are worried about their competitiveness.

Meanwhile, crude palm oil production in Malaysia rose 20.67% month on month to 1.83 million mt in July offsetting the lower harvest rates due to holidays in Southeast Asia during June, the data showed. CPO inventory in Malaysia also rose 16.83% month on month to 1.78 million mt in July.

Market analysts said that inventories in Malaysia and Indonesia, which fell to record low levels in 2016 when production was badly affected by the El Nino-induced drought, need around a year to recover.

July CPO stocks edged up 0.79% from last year.


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