Malaysian August palm oil exports are staying high with demand being generated by palm prices below soyoil, Hamburg-based oilseeds analysts Oil World said on Tuesday. Palm oil prices have fallen about 20 percent so far this year because of large stocks in key producing countries including Malaysia.
But strong export demand is being seen, with "shipments from Malaysia probably establishing a new record this month," Oil World said. Oil World is more optimistic than cargo surveyor SGS, which on Monday forecast a 0.5 percent fall in August palm oil exports from Malaysia, the No 2 global exporter.
Malaysian export sales are a key price factor for global palm oil prices. Refined, bleached and deodorised palm oil is still about $75-$95 a tonne cheaper than Argentine soyoil although this is down from a palm price lead of $121 a tonne against soyoil in July, Oil World said.
"Production of palm oil will not reached its full potential owing to this month's Ramazan festivities which are likely to enforce a reduction of Malaysian palm oil stocks in August," it said. China is also likely to raise its palm oil imports in August, Oil World added.
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