Higher production and exports, but lower stocks. Malaysia’s CPO production rose in June 10 by a minimal 2.5% mom, while exports rose by a larger 5.5% mom. As a result of the larger rise in exports versus production, closing CPO stock levels fell to 1.45m tonnes in June (from 1.56m tonnes in May) and stock/usage ratio fell further to 7.8% (from 8.5% in May and versus the 7-year average of 9.1%). However, going forward, notwithstanding any effects of adverse weather, we expect this to potentially start reversing from next month onwards, as it approaches the peak seasonal production period.
Plantation - Peak Production Period To Start Soon - 13/7/2010
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