NUSA DUA, Indonesia Dec 1 (Reuters) - Palm oil stocks in Malaysia are set to rise if the government does not change policies in response to top supplier Indonesia imposing export tax differentials that favour shipping out refined products, a top analyst said on Thursday.
James Fry, Chairman of commodities consultancy LMC International, said processed palm oil inventories would grow as the No.2 producer struggles to keep market share with Indonesian exporters getting a price edge in shipping out more refined products.
And eventually that would lead to a decline in demand for crude palm oil for processing, further building up stocks in Malaysia.
