Palm Oil Futures Market & Updates | March 29, 2024

oil futures

Unlock the latest insights into Malaysian palm oil futures and market dynamics with our comprehensive article. Discover how trends in soyoil and Chicago Board of Trade prices are shaping the market, along with key factors influencing palm oil exports and currency dynamics.

Malaysian Palm Oil Futures Decline Amidst Global Concerns

Malaysian palm oil futures witnessed an upward trend on Friday, reflecting the surge observed in competing soyoil prices, effectively reversing the downturn experienced over the preceding two trading sessions. The benchmark palm oil futures contract for June delivery, listed on the Bursa Malaysia Derivatives Exchange, exhibited a notable rise of 61 ringgit or 1.05%, reaching 4,197 ringgit ($880.45) per metric ton by the midday break

Month Last Open Change High Low
Apr’24 4328 4288 72 4328 4281
May’24 4269 4233 61 4270 4219
Jun’24 4197 4161 61 4200 4151
Jul’24 4113 4081 62 4114 4067

Click Here To View March 26, 2024 Report

Global Factors Influencing Palm Oil Prices

Price movements in related oils, such as soyoil, have a substantial impact on palm oil prices, as both commodities vie for market share in the global vegetable oils market.

  • Global Oil Market Dynamics

Global oil market, recent developments including the surge in oil prices by more than $1 per barrel on Thursday have bolstered market sentiments. Factors such as OPEC+ commitment to production cuts, ongoing attacks on Russia’s energy infrastructure, and a declining U.S. rig count have contributed to tightening crude supplies, thereby influencing palm oil market dynamics.

  • Implications of Weaker Crude Oil Futures

Weaker crude oil futures have rendered palm oil a less appealing option for biodiesel feedstock, further shaping market preferences and demand dynamics.

Government Initiatives in Indonesia

In Indonesia, the world’s largest palm oil producer, efforts to incentivize palm oil production have been underscored by the government’s decision to double subsidies for palm oil replanting. Chief Economic Minister Airlangga Hartarto announced plans to increase subsidies to 60 million rupiah ($3,785.49) per hectare starting from May, aiming to enhance farmer participation and productivity in the industry.

  • Production and Export Statistics

Recent data from the Indonesian Palm Oil Association (GAPKI) revealed a slight decline in January palm oil exports compared to the previous year. However, production figures for crude palm oil and kernel oil have shown an increase, indicating the resilience and growth potential of the palm oil sector despite market fluctuations.     

               Click Here To View March 27, 2024 Report

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 MYR3,700 to MYR4,300 per ton.