Dekel Agri-Vision has "mixed" July as CPO hits "seasonal low"

Dekel Agri-Vision PLC on Monday reported a "mixed month" for crude palm oil production in July, although its palm kernel oil and cashew operations both delivered strong performances.

Shares in Dekel fell 6.7% to 0.35 pence per share on Monday afternoon in London.

Dekel said CPO production decreased 15.4% year-on-year in July to 936 tonnes from 1,107 tonnes. The company said it had anticipated the seasonal low period, consistent with the moderation it flagged following three consecutive months of year-on-year growth.

CPO extraction was broadly stable at 19.5% in July, compared with 19.6% a year earlier. CPO selling prices remained broadly stable year-on-year, falling 0.7% to EUR945 per tonne from EUR952. CPO sales decreased 7.8% to 931 tonnes from 1,010 tonnes.

Dekel noted that local CPO prices continue to trade at a discount to international prices, which remain above EUR1,200 per tonne. The company said local pricing may strengthen towards prevailing international market levels as local production moderates through the low season.

Palm kernel oil selling prices increased 13% year-on-year to EUR1,333 per tonne from EUR1,175. PKO production increased 62% to 196 tonnes, while sales rose 232% to 425 tonnes, reflecting the "batch nature" of production and sales, Dekel said.

The company said it anticipates PKO production will remain at elevated levels over the coming months, supported by higher-than-normal kernel stock levels.

In July, Dekel's cashew operation delivered a new monthly processing record, processing approximately 800 tonnes of raw cashew nuts. Cashew sales volumes and prices remained stable, reflecting steady underlying demand, Dekel said.

Chief Executive Officer Youval Rasin said: "July was a mixed month for our palm oil operation, with CPO production down 15.4% year-on-year as we entered the seasonal low period, consistent with the moderation we flagged following three consecutive months of growth.

"However, our palm kernel oil volumes strengthened materially, with production up 62.0% and sales up 232%, supported by higher than normal kernel stock levels, while PKO pricing improved 13.4% year-on-year. Our cashew operation delivered a strong month, processing approximately 800 tonnes of RCN, continuing the strong momentum built through H1 2026."

Dekel will report quarterly production and sales data for the cashew operation in October.

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