Malaysian Palm Oil : bounced back above the Riggint 4,000 per tonne mark, hovering near levels not seen since late August, as a weaker ringgit and concerns about tight global supplies offset prospects of sluggish demand.
Clouds of uncertainty loom over exports of sunflower oil from Ukraine after Russia withdrew from a Black Sea export deal amid tensions between the two countries.
Howerver, B-Trams Analyst Abdul Hameed Said ; Palm oil market looks defensive as I said before due to fundamentals slow demand high production and increase in stock is the main concern.external factors supporting the price but very short term and not sustainable High spread between palm and soya more favour from palm due trade interest.
Also He said, Black sea corridor news pump up palm price in early session but lake of demand its drop near 100rm at the time of writing report,now traders focus on MPOB data which is looking bearish but provide the new lead to traders
In domestic markets, storms and a high risk of flooding during the monsoon season, usually between October and January, sparked concerns about disrupted harvesting activities, which could hurt production in the world’s second-largest palm producer.
Keeping a lid on prices was lingering worries about weak demand, particularly from China, the world’s top consumer, amid persistent coronavirus-induced restrictions.
While Exports of Malaysian palm oil products for October 1-25 dropped 3.5% from the same period in September, cargo surveyor Intertek Testing Services said.
Mean while Crude Oil traded near $88 per barrel on Monday and were headed for the first monthly gain since May, as investors braced for large OPEC + production cuts that threaten to tighten the market further heading into winter.
The crude oil cartel is set to reduce OPEC + output by 2 million barrels per day from November in a move largely seen as aimed at keeping prices high, though the group cited economic headwinds and the need to protect the oil industry.