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Bullish or Bearish, MPOB Data Is Watchable Tomorrow After Palm oil Snaps Three-Day Decline

COMMODITIES(B-Trams):

KUALA LUMPUR: Malaysian palm oil futures switched early misfortunes on Thursday, snapping a three-day decline as brokers moved their concentration to the impending palm oil board information MPOB , after an exceptionally expected meeting in Kuala Lumpur didn’t demonstrate an unmistakable cost pattern.

On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for delivery in May closed up 24 ringgit, or 0.57 percent, at 4,204 ringgit ($930.29) per tonne.

According to a trader based in Kuala Lumpur, weaker Dalian and crude oil are putting some pressure on the market. However, a weak ringgit and the expectation of a sharper drop in palm inventories in February limit the downside.

Also Read:Palm Oil Midday Market Closed Lower

On Friday, the Malaysian Palm Oil Board (MPOB) is schedule to publish data on supply and demand for February.

Leading industry officials and analysts stated at a conference on Wednesday that Indonesia’s biodiesel policy and the likely emergence of the El Nino weather pattern could further strain global inventories of palm oil and raise prices later this year.

Analyst Dorab Mistry stated at the conference that Indonesia’s ambitious biodiesel mandate will keep stocks tight in the first half of 2023. As a result, Malaysian palm oil is anticipated to trade between 4,000 and 5,000 ringgit ($1,106) per tonne from now and August.

According to analyst James Fry, lower gasoil prices will force the contract to trade at 3,350 ringgit by the end of the year.

Also Read: CBOT Soybeans Futures May Retest Support At $15.10-3/4

Malaysian production is expected to rise by 600,000 tonnes to 19 million tonnes in 2023, according to analyst Thomas Mielke, while Indonesian production is expected to rise by 1.2 million tonnes to 47.7 million tonnes.

The trader stated that the analysts’ conference forecast is still  absorbed by the market.

The palm oil contract and the soyoil contract is both down 1% and 0.5 percent, respectively, in Dalian. On the Chicago Board of Trade, the price of soy oil rose 0.7 percent.

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