Oleochem Analytics — Malaysia’s end-July palm oil stocks fell for the first time in eight months lower by 7.3% from the previous month to 1.5 million tons, data from industry regulator Malaysian Palm Oil Board (MPOB) showed on August 11.
Crude palm oil production in July also declined for the first time in five months, falling by 5.17% from June to 1.52 million tons. Palm oil exports dwindled by 0.75% to 1.41 million tons, MPOB said.
MPOB said oleochemical exports rose by 5.74% in July to 245,267 Mt from 231,947 Mt the previous month. Biodiesel exports in July slumped by 40.22% to 23,838 Mt from 39,877 Mt in June this year.
Prices for Malaysia’s crude palm oil are likely to be affected by the national total lockdown announced June 1 by the country, tighter supplies and the strength in prices from competing edible oils, such as soybean oil.
Malaysia’s total lockdown, that was originally set to last until June 14, was extended indefinitely until daily cases fall below 4,000, as a counter measure against the spread of Covid-19. Malaysia reported 19,991 new coronavirus cases, and 201 new deaths on August 6, according to the John Hopkins University Resource Center.
Malaysia has also one of Asia’s highest rates of inoculation, with 28,94% of its 32 million population being fully vaccinated, according to the John Hopkins University Resource Center.
Even though Malaysian government has said lockdown measures would only be eased when 10% of the country’s population had received two doses of Covid-19 vaccine and the rate of bed usage in intensive care units is at a moderate level, it has not announced any changes on the lockdown measures.
During current lockdown, workforce capacity is limited in enclosed spaces like palm oil and biodiesel processing plants to 60%, while plantation and nursery workforce capacity is being able to operate as normal at 100%, according to the Malaysian Palm Oil Board (MPOB).
