Malaysian palm oil futures fell to below MYR 3,320 per tonne, approaching the two-and-a-half-year low of MYR 3,200 touched on May 31st amid evidence of lower demand and strong supply. Early cargo surveyors showed that exports of Malaysian palm oil products fell by 16.7%-17.6% from the previous month in the first ten days of June. The developments were affected by stronger competition from the world’s top producer, Indonesia, as oversupply in its domestic market spurred higher exports. In the meantime, data from the Malaysian Palm Oil Board showed that inventories were at 1.67 million tonnes in the end of May, 12.6% higher than the previous month to mark the first buildup in four months. Inventories were built on the back of strong production in the period, with domestic output jumping by 27% to 1.52 million tonnes, firmly above expectations of 1.45 million.
