Anticipation of higher stocks to weigh on CPO

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Stocks are likely to increase by 6% in June 2023 compared to May 2023.

The Malaysian Palm Oil Board supply and demand report is scheduled to be released today, which could determine market movements throughout the week, palm oil trader David Ng said.“Hence, we expect prices to trade between RM3,650 and RM3,900 per tonne,” Ng said.

Earlier, the Malaysian Palm Oil Association estimated that palm oil output for June stood at 1.41 million tonnes, down by 7.39% from May. Last Monday, the benchmark month of the CPO closed near the RM4,000 level at a more than three-month high amid a rally in vegetable oil markets.

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