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Palm Oil Market Palm Oil Updates | March 25, 2024

Malaysian Palm Oil  Futures Decline Amidst Global Concerns

Malaysian Palm oil futures experienced a notable uptick on Monday, interrupting a streak of losses seen in the previous two sessions. This surge in prices can be attributed to several factors, including robust export data and subdued output growth. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange witnessed a 1% Or 61 increase, reaching 4,230 ringgit ($895.05) per metric ton during the midday break. This turnaround follows a decline of approximately 2% observed in the preceding two sessions. red palm oil

Month Last Open Change High Low
Apr’24 4354 4322 47 4375 4284
May’24 4315 4266 63 4338 4232
Jun’24 4249 4202 61 4273 4165
Jul’24 4155 4119 49 4183 4085

CPO FUTURES PRICES IN RINGGIT

 

Export Expansion and Production Trends

According to cargo surveyor Intertek Testing Services, Malaysian palm oil product exports surged by 13.8% from March 1 to March 25 compared to the previous month’s figures. This acceleration in export growth, notably higher than the 7.4% increase recorded from March 1 to March 20, has contributed significantly to the positive sentiment in the market.      red palm oil

Palm Products

March 1-25

Feb 1-25

Crude palm oil

147,581

210,465

RBD Palm oil

121,505

80,377

RBD palm olein

327,653

270,206

RBD palm stearin

72,666

69,609

Crude Palm kernel oil

20,250

8,690

Palm fatty acid distillate

45,235

20,860

Potential Policy Shift in Indonesia

Another factor bolstering palm oil prices is the prospective revision of Indonesia’s domestic market obligation (DMO) policy for cooking oil. As the potential impact of linking the DMO policy to production rather than exports. This proposed shift could tighten export availability, potentially leading to a bullish market outlook.

Deceleration in Palm Oil Buying and Shipping Trends in Indonesia

Palm oil purchasing has reportedly slowed down due to diminishing processing margins. Buyers are waiting for a price correction before re-entering the market. In Indonesia, the top producer, official data revealed that the country shipped 1.89 million metric tons of palm oil products in January and 1.01 million tons in February. These figures are below the monthly average observed over the past year. red palm oil

 

In conclusion, Malaysian palm oil market reveals a delicate interplay of domestic and global factors. As, these uncertainties, a comprehensive understanding of the evolving dynamics for Palm trade in Neutral To Bullish Position due to narrow gap between rival soft edibles oils, it may hovering in the range of MYR3,800 to MYR4,300 per ton.

 

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