One of the strongest industries in Malaysia is the palm oil market which acts as a strong support to the economy. Malaysia is known to handle its palm stock seriously; as it is one of the strongest suits in the country. However, recent reports show that there has been a huge decline in the overall palm oil stockpiles in the country. The numbers have been falling from the past march, reaching its lowest by the end of May.
According to the reports the prices of the palm oil has decreased almost 5% due to the decrease in the demand and the high number of stocks that is present in the country. Being the largest produced material in Malaysia, currently there is a decrease in Stockpiles that has reached over 10.3% which is resembled as 2.45 million tons compared to the previous month alone.
This was commented on by a trader and expert in the palm oil market on Malaysia by saying, “Stocks went down on higher exports and local consumption,” said a trader at an oil palm milling company, adding that Malaysia’s local consumption of palm oil rose due to higher demand during the Muslim fasting month of Ramadan. June exports might not be as good as May as the Ramadan and Eid demand will be over,” said the trader. There was a higher number of working days in May, and workers may have harvested more aggressively before going on holidays. June production then should be lower.”