Malaysian Palm Oil Futures Decline Amidst Global Concerns
Malaysian palm oil futures market are off to a strong start this Monday, aligning with the upward trajectory seen in soyoil and palm oil contracts at the Dalian Commodity Exchange, as well as the surge in soyoil prices at the Chicago Board of Trade.The benchmark palm oil contract for June delivery on the BMD Exchange showed significant gains, rising by 93 ringgit, marking a 1.79% increase to reach 4,266 ringgit ($895.36) per metric ton during the morning trading session.
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CPO FUTURES PRICES IN RINGGIT |
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| Month | Last | Open | Change | High | Low |
| Apr’24 | 4418 | 4360 | 93 | 4420 | 4351 |
| May’24 | 4338 | 4308 | 72 | 4338 | 4272 |
| Jun’24 | 4266 | 4235 | 72 | 4269 | 4201 |
| Jul’24 | 4187 | 4155 | 78 | 4189 | 4123 |
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BY TEAM ABDUL HAMEED |
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Click Here To View March 26, 2024 Report
Interconnectedness in Global Vegetable Oils Market
Palm oil, being a significant player in the global vegetable oils market, is inevitably influenced by the price movements of related oils as they vie for market share.
Robust Export Figures for Malaysian Palm Oil Products
According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for March showcased a remarkable increase of 20.5%,.
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Total Palm Exports Comparison, by Month |
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| Month | Total | Net Change | m/m % |
| March | 1,333,138 | 227,084 | 20.5 |
| February | 1,106,054 | -180,455 | -14 |
| January | 1,286,509 | -92,421 | -6.7 |
Currency Dynamics and Market Influence
The Malaysian ringgit, which serves as palm oil’s currency of trade, exhibited a marginal weakening against the dollar. A depreciating ringgit enhances the attractiveness of palm oil for foreign currency holders.
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Palm Products Export Comparison |
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| Palm Product | March | Feb |
| Crude palm oil | 278,670 | 242,605 |
| RBD palm oil | 128,040 | 102,345 |
| RBD palm olein | 393,673 | 292,909 |
| RBD palm stearin | 83,615 | 72,470 |
| Crude palm kernel oil | 22,740 | 8,690 |
| Palm fatty acid distillate | 60,745 | 30,080 |
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Top Palm Markets Comparison |
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| Destination | March | Feb |
| European Union | 272,935 | 319,280 |
| China | 89,385 | 88,170 |
| India & subcontinent | 311,130 | 218,115 |
Technical Analysis Insights
According to Reuters’ technical analyst Wang Tao, palm oil may surpass the resistance level at 4,242 ringgit per metric ton and continue to ascend. This projection comes as the correction from the high observed on March 15th, which stood at 4,327 ringgit, appears to have reached its conclusion.
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.
