Wednesday, July 10, 2013

July 10 - MPOB End-June Inventory & Export Data

*Malaysia’s June Palm Oil Exports 1.41 Mln Tons; Up 0.3% on Month -MPOB
*Malaysia June CPO Output 1.42 Mln Tons; Up 2.3% on Month -MPOB
*Malaysia’s End-June Palm Oil Stocks 1.65 Mln Tons; Down 9.4% on Month -MPOB

Malaysia’s End-June Palm Oil Stocks 1.65mil tonnes, the lowest reading recorded since Mar'2011.
Despite the lower stock level, the dark cloud over the local palm oil industry still here to stay.

As you read further into the industry report out,
  • Higher local consumption is still the only positive factor helping in easing the stock level.
  • Output still climbing, albeit in a slower than expected rate during the seasonal high production period through Q2 (April-June).
  • Exports demand remain subdue, up only a marginal 0.3% m.o.m.
The heighten local consumption demand is reasonable given that the Muslim Ramadhan Month has just started, with the Raya just a month away.

CPO price may find support in the bullish report released, price shall be buoyed by the Ramadhan & Raya theme, for a little while more.
Let's see if that will be able to send price pass the 2,400-2,420 resistance band now.

Till then!
Happy Hunting!! :)

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