21 January 2013 09:37 [Source: ICIS news]
SINGAPORE (ICIS)--Malaysia’s palm oil exports during 1-20 January fell by 17.3% month on month to 830,830 tonnes, according to cargo surveyor Intertek Testing Services.
The weak export data raised concerns over the country’s bulging palm oil stocks, which are currently at a record 2.63m tonnes, market participants said.
Shipments from the world’s second largest producer of palm oil have been dampened by China's stricter quality control rules on edible oil imports and seasonally lower demand in Europe, sources said.
In addition, a recent move by India’s government to levy a 2.5% import duty on crude edible oil imports could hurt import demand, they said.
The more sanguine market participants said the dry weather conditions in South America's soy-producing regions may lead to a lower supply of competing vegetable soybean oil and boost demand for palm oil.
“Heavy rain in Malaysia may cause flooding and affect palm oil production," a trader said.
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