Malaysian Palm Oil Futures Decline Amidst Global Concerns
Malaysian palm oil futures market concluded Friday’s trading session on a downtrend, yet managed to secure weekly gains, with market focus shifting towards the eagerly anticipated March inventory report from the Malaysian Palm Oil Board (MPOB).Benchmark palm oil contract for June delivery on the BMD Exchange witnessed a decline of 55 ringgit, equivalent to 1.25%, settling at 4,345 ringgit ($915.70) per metric ton.
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PALM OIL PRICES IN RINGGIT |
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| Month | Last | Open | Change | High | Low |
| Apr’24 | 4566 | 4548 | -11 | 4550 | 4531 |
| May’24 | 4423 | 4465 | -54 | 4465 | 4425 |
| Jun’24 | 4345 | 4384 | -55 | 4386 | 4347 |
| Jul’24 | 4274 | 4319 | -57 | 4321 | 4280 |
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BY TEAM ABDUL HAMEED |
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Market Sentiment and Outlook
According to a trader based in Kuala Lumpur, the futures palm oil market is currently in a consolidation phase as participants eagerly await the release of the monthly MPOB data, which is poised to offer crucial insights into the state of Malaysia’s palm oil inventories.
- Anticipated Inventory Data
Forecasts Reuters survey indicate an anticipated 6.65% decline in Malaysia’s palm oil inventories, potentially reaching an eight-month low of 1.79 million tons by the end of March. This impending data release, scheduled for April 15, holds significant sway over market sentiment and price dynamics.
Global Influences and Interconnections
The global vegetable oils market, remains susceptible to price movements in related oils. Notably, the closure of China’s Dalian Commodity Exchange for the Qingming festival exerted minimal influence on market activities, while soyoil prices on the Cbot exhibited a marginal uptick of 0.18%.
External Factors and Market Dynamics
Palm oil prices is intricately linked with developments in related commodities. For instance, soybeans experienced a decline on Thursday, prompted by subdued weekly export sales data from the U.S. Department, coupled with heightened supplies from the South American harvest & diminishing soyoil prices.
Global Market Dynamics
Meanwhile, the broader oil market continued its upward trajectory on Friday, poised to secure a second consecutive weekly gain. Geopolitical tensions in Europe and the Middle East, coupled with concerns regarding tightening supply dynamics and optimism surrounding global fuel demand growth amid improving economic conditions, collectively buoyed oil prices.
Click Here To View April 4, 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 MYR4,000 to MYR4,500 per ton.
