Malaysian palm oil exports dropped 18% MoM, according to the latest Malaysian Intertek testing services data. This was driven by a huge drop in exports to the EU and India, down 27% and 20% respectively while there was a 50% dip in exports to the Middle East, with monthly exports as of July 25th at 71,835mt. Following July monthly trends of sinking Malaysian exports so far, total July exports are unlikely to exceed 1,400,000mt, down 15% on June total exports of 1,649,447mt.
Indonesia introduced a new export levy on crude and processed palm oil earlier this month. A tax of $50/mt on crude palm oil exported and $30/mt on processed palm oil was introduced, with proceeds going towards domestic biodiesel subsidies and improving margins for Indonesian refiners. This impact on Indonesian exports was expected to be counteracted by greater Malaysian exports, however soybean oil reaching a 4 month low this week has sent it the other way, diminishing the demand for palm oil as a food and fuel substitute.