Malaysian Palm Oil Futures Decline Amidst Global Concerns
Malaysian palm oil price witnessed a slight downturn on Thursday, interrupting a four-session surge as investors engaged in profit-taking activities. This decline in trading activity was influenced by a holiday in China, while market participants eagerly anticipated the release of monthly end stock data. The benchmark palm oil contract for June delivery on the BMD Exchange closed down by 10 ringgit or 0.23%, settling at 4,397 ringgit ($928.22) per metric ton. Analysts attributed this downward trend to profit-taking activities following a bullish rally the previous day.
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CRUDE PALM OIL PRICES IN RINGGIT |
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| Month | Last | Open | Change | High | Low |
| Apr’24 | 4558 | 4560 | -21 | 4591 | 4545 |
| May’24 | 4470 | 4480 | -9 | 4506 | 4452 |
| Jun’24 | 4398 | 4405 | -9 | 4431 | 4376 |
| Jul’24 | 4329 | 4331 | -7 | 4356 | 4307 |
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BY TEAM ABDUL HAMEED |
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The futures were seen trading sideways on a profit-taking after a bullish rally on Wednesday. Market is now waiting for Malaysian palm oil full March production estimates.” Moreover, the absence of trading activity due to Chinese market holidays contributed to the subdued atmosphere.
Anticipated Decline in Malaysian Palm Oil Inventories
According to a survey conducted on Thursday, Malaysia’s palm oil inventories are projected to decrease by 6.65% from the previous month, reaching an eight-month low of 1.79 million tons by the end of March. This decline is a significant development can impact market dynamics.
Upcoming Data Release
The Malaysian Palm Oil Board (MPOB) is slated to unveil the latest data on April 15. However, the closure of the Dalian Commodity Exchange on Thursday and Friday for the Qingming festival has temporarily limited market activities. Concurrently, soyoil prices on the Chicago Board of Trade experienced a marginal decrease of 0.02%.
Shifts in Global Vegetable Oil Markets
India, being a major player in the global vegetable oil market, is expected to witness a rise in rapeseed and mustard output by 7% compared to the previous year, reaching a record high of 12.09 million metric tons in 2024. This surge in Malaysian Palm Oil Futures Experience Dip Amid Profit-Taking
Malaysian palm oil futures witnessed a slight downturn on Thursday, interrupting a four-session surge as investors engaged in profit-taking activities. This decline in trading activity was influenced by a holiday in China, while market participants eagerly anticipated the release of monthly endstock data.
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.
