MARKET DEVELOPMENT
Palm Oil Exports To Soar In Coming Months On Ramadan Stock-up Activity
Palm Oil Exports To Soar In Coming Months On Ramadan Stock-up Activity
11/05/2013 (Bernama) - Malaysia's palm oil exports are expected to increase in coming months due to the stock-up activity ahead of the Ramadan fasting month that falls on July, says a research house.
JF Apex Securities said demand for palm oil would soar as consumption for palm oil-derived cooking oil would surge during the fasting month.
It said the current lower palm oil stockpile might fall further as ballooning palm oil demand ahead of the Ramadan month would accelerate the commodity's exports and drive down inventory, it said in a statement.
The country's palm oil inventory in April fell by 11 per cent month-on-month to 1.9 million tonnes, dwindled to below the two million threshold for the first time in 10 months following a 10.9 per cent decline in March.
"We view the shrinking palm oil inventory to be a catalyst for the crude palm oil price recovery as the concern over palm oil oversupply has diminished," it said.
CPO price in April averaged at RM2,295 a tonne, shed by a marginal 1.6 per cent m-o-m due to lack of strong catalyst to support the CPO price.
JF Apex has maintained its "marketweight" stance on the plantation sector as they opined that the falling palm oil inventory and higher demand ahead of the Ramadan month shall provide mild support to CPO price.
JF Apex Securities said demand for palm oil would soar as consumption for palm oil-derived cooking oil would surge during the fasting month.
It said the current lower palm oil stockpile might fall further as ballooning palm oil demand ahead of the Ramadan month would accelerate the commodity's exports and drive down inventory, it said in a statement.
The country's palm oil inventory in April fell by 11 per cent month-on-month to 1.9 million tonnes, dwindled to below the two million threshold for the first time in 10 months following a 10.9 per cent decline in March.
"We view the shrinking palm oil inventory to be a catalyst for the crude palm oil price recovery as the concern over palm oil oversupply has diminished," it said.
CPO price in April averaged at RM2,295 a tonne, shed by a marginal 1.6 per cent m-o-m due to lack of strong catalyst to support the CPO price.
JF Apex has maintained its "marketweight" stance on the plantation sector as they opined that the falling palm oil inventory and higher demand ahead of the Ramadan month shall provide mild support to CPO price.