Interband Group of Companies senior palm oil trader Jim Teh said higher stocks in Malaysia and Indonesia, which together stood at more than six million tonnes, coupled with production season in the domestic market would put pressure on prices.
“Export data for June 1-20 are not that encouraging and we are heading into recession where people would only buy what they need.Teh said despite the recent selldown in CPO, the planters were still making profits given the cost of production which ranged between RM1,600 and RM1,800 per tonne. For the week just ended, the Malaysian CPO futures were mostly influenced by a sell-off in palm and soy bean oil on the Dalian Commodity Exchange, weakness in the June export data, and higher palm exports coming out of Indonesia ahead of peak production.