What contributed to the 7.24 per cent increase in CPO stocks during July?

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Increase in CPO Stocks Attributed to Production Growth Outpacing Exports

Malaysia's crude palm oil (CPO) stocks experienced a 7.24 per cent rise in July, reaching 1.43 million tonnes. This increase was primarily driven by a significant surge in CPO output, which grew by 9.41 per cent to 1.79 million tonnes during the same month. While palm oil exports also saw a substantial jump of 14.50 per cent to 1.39 million tonnes, the growth in production was greater than the increase in exports, leading to a net accumulation of CPO stocks.
CPO Production Surged in July

Crude palm oil production in Malaysia saw a notable increase of 9.41 per cent in July compared to the previous month. Output rose from 1.64 million tonnes in June to 1.79 million tonnes in July, representing an addition of 154,183 tonnes. This boost in production is a key factor contributing to the overall rise in CPO inventories.
Palm Oil Exports Experienced Significant Growth

Exports of palm oil also demonstrated robust performance in July, climbing by 14.50 per cent. Shipments increased from 1.22 million tonnes in June to 1.39 million tonnes in July. This upward trend in exports indicates strong international demand for Malaysian palm oil products.
Net Effect Led to Stock Accumulation

Despite the strong export performance, the increase in CPO production in July was more pronounced than the rise in palm oil exports. This disparity resulted in a net accumulation of CPO within the country. Processed palm oil stockpiles saw a slight decrease of 0.99 per cent, but the substantial increase in crude palm oil more than offset this, leading to the overall rise in total palm oil stocks.

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What contributed to the 7.24 per cent increase in CPO stocks during July?

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