Malaysia’s palm oil shipments grew 21% on the month to 1.4 million tons in July, thanks to stronger demand from China and Europe, according to data released on Wednesday by the Malaysian Palm Oil Board, Asia.Nikkei reported. Exports to China—the top destination—more than doubled to 210,781 tons after the government stopped releasing its rapeseed oil reserves, CIMB Investment Bank said in a report on the sector. Chinese demand for palm oil, which is widely used in food and industrial production, is also increasing ahead of the Mid-Autumn Festival in September. Shipments to India rose 12% to 189,358 tons, while Europe-bound exports surged 26% to 189,735 tons—reversing the 11% fall in overall exports in June. The total palm oil inventory shrank by 0.2% to 1.8 million tons, while production grew by 3.5% to 1.6 million tons. The higher-than-expected rise in output indicates that the El Nino weather phenomenon’s impact on palm fruit yields “may be fading,” CIMB said.
