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B-Trams :CPO futures continue to rise in Malaysia, reaching new all-time highs.The oil price continues to rise amid tensions between Russia and Ukraine and reaches US$ 90, a rise of 16% since the beginning of the year. This supports oil prices in general.Read More..

The US dollar continues to strengthen internationally.  Although the US FED has decided to keep the interest rate unchanged, rate hikes are expected in the coming months given the high inflation data.Read More..

As for CPO, futures on the BMD hit record highs again following Indonesia’s announcement on Thursday that all cooking oil producers will have to sell 20% of their planned export to the domestic market. Last week the government had announced the introduction of export permits. All these measures are intended to combat the sharp rise in prices in Indonesia’s local market.

Malaysian CPO production in January could end up below expectations and despite the sharp reduction in exports, ending stocks could be lower than the previous month.
The CPO price has lost a lot of competitiveness against other oils in recent weeks. In particular, for immediate positions it is trading above SBO and SFO prices.Demand, mainly from India, is expected to increase purchases of other oils.

In South America, the soybean crop situation in Brazil and Paraguay is of concern due to the lack of rainfall and high temperatures. Further reductions in current production estimates are not ruled out. In Argentina, the Buenos Aires Grain Exchange reduced its area estimate by 100,000 ha that could not be sown in time due to the lack of humidity.

On the other hand, sunflower oil prices are supported by the very good competitiveness vs. SBO and CPO, in addition to the tensions between Russia and Ukraine, countries that account for at least 80% of world SFO exports. However, the quantity of sunflower seeds available for the Jan/Aug period is estimated to be around 7 million tonnes higher than last season, limiting the upside potential.

Thanks : sangita