Output of palm oil in Malaysia, the world's top producer, could be 5.2 percent higher in July than June due to a fresh rise in yields, a Reuters survey showed on Monday.
Analysts from five plantation firms that usually participate in the poll had forecast a production growth of 3.5 percent for July. But stocks of palm oil in the market were expected to be lower than initially forecast, they said.
Analysts had put end-July stocks of palm oil at 8.6 percent up from June. But on Monday's estimate was only 6.5 percent higher. "There was a pick up in sales towards the end of last month, so that's why the stocks are revised down despite the rise in production," said a survey participant.
The survey put July production of palm oil at a median of 1,269,467 tonnes. Output in June officially stood at 1,206,718 tonnes, down 7.1 percent from May due to crop fatigue after three straight months of record production from March.
But the brief rest in June, and more rains since, had helped lift production, analysts said. The median estimate for exports in July was 1.05 million tonnes, down 10.2 percent from June's 1,168,895 tonnes.
Imports from neighbouring Indonesia to supplement local refiners' needs were estimated at a median of 25,000 tonnes.
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