This was mainly due to a double digit decline in exports by 13% m-o-m which was mitigated by a smaller decline in June’s production. “One trader attributed the weak exports to shipping problems, such as space constraints in containers,” he adds.
Analysts at RHB Bank Singapore and Maybank Securities are keeping “neutral” on the plantation sector on the back of increasing inventory.
Maybank analyst Ong Chee Ting notes that the Malaysian Palm Oil Board’s June stockpile continued its third consecutive month of uptrend rising to 1.83 metric tonnes, 4% higher m-o-m, in line with consensus estimates.
