Total exports of palm oil methyl ester (PME) from Malaysia and Indonesia hit an eight-month high in July, largely supported by seasonal demand from Europe and a wider spread between palm oil and gasoil prices. PME shipments totalled 38,475t in July, according to cargo surveyor AmSpec, the highest since November last year. This included 21,975t of PME shipped from Pelintung, Indonesia to the Americas, the highest volume since Argus records began in 2018. The July shipment surpassed the previous high of 20,085t that went to the Americas last August, which was also the last time that PME was shipped to the Americas from Indonesia.
The remaining 16,500t was shipped from Pasir Gudang, Malaysia to Asia Oceania and Europe, which took 1,200t and 15,300t respectively. This rise in popularity of PME can be attributed to the spread between palm oil and gasoil prices falling to a record low of $246/t on 15 July, coupled with a seasonal rise in demand from Europe that led to a 53pc month-on-month rise in shipments to the region last month.