Malaysia end-June palm oil stocks rise

Malaysia's palm oil stocks at end-June rose to their highest in seven months as its exports were throttled by rival Indonesia's policies to boost its own shipments, industry regulator data showed on Tuesday.

Inventories in Malaysia, the world's second-largest producer, rose 8.76per cent from the previous month to 1.66 million tonnes, its highest since November, according to the Malaysian Palm Oil Board (MPOB). Crude palm oil production climbed 5.76per cent from May to 1.55 million tonnes, also at a seven-month peak.

However, the production rise was smaller than expected, underscoring continuous supply disruptions at most plantations due to labour shortages, a Kuala Lumpur-based trader said.

Exports plunged 13.26per cent to 1.19 million tonnes after Indonesia reversed a short-lived export ban in May and instead imposed a string of rules to encourage overseas shipments.