Malaysian Palm Oil Futures Decline Amidst Global Concerns
Malaysian palm oil market futures rebounded on Tuesday, putting an end to a three-day slide, buoyed by expectations of reduced inventories. However, gains were tempered by higher premiums.In a positive turn of events, the benchmark palm oil contract for June delivery on the BMD Exchange closed higher, climbing 25 ringgit or 0.58% to reach 4,320 ringgit ($910.43) per metric ton.
| CPO FUTURES PRICES IN RINGGIT | |||||
| Month | Last | Open | Change | High | Low |
| Apr’24 | 4520 | 4520 | 6 | 4537 | 4514 |
| May’24 | 4395 | 4383 | 13 | 4408 | 4345 |
| Jun’24 | 4320 | 4291 | 25 | 4333 | 4261 |
| Jul’24 | 4248 | 4224 | 28 | 4258 | 4184 |
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BY TEAM ABDUL HAMEED |
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Anticipated Decrease in Malaysian Palm Oil Inventories
According to a Reuters survey conducted on Thursday, Malaysia’s palm oil inventories are anticipated to have decreased by 6.65% from the previous month, hitting an eight-month low of 1.79 million tons by the end of March. Investors are eagerly awaiting the release of the data by the Malaysian Palm Oil Board (MPOB) on April 15.
Challenges and Market Dynamics
Although palm oil prices experienced an upward trend, the premium it commands over soft oils like soybean and sunflower has somewhat subdued demand, Furthermore, trading activity remained somewhat subdued in anticipation of the Malaysian market holidays on April 10 and April 11.
Impact of India’s Palm Oil Imports
In a related development, India’s palm oil market imports witnessed a significant decline, reaching their lowest level in 10 months in March, as buyers opted for the cheaper alternative of sunflower oil.
- Global Market Influences
Palm oil prices are influenced by price movements in related oils, as they vie for market share in the global vegetable oils market. For instance, soyoil prices on the Chicago Board of Trade experienced a 0.2% increase.
- Future Outlook
Despite the recent uptick, palm oil may face further downward pressure, with projections pointing towards a potential drop to 4,242 ringgit per metric ton, as indicated by a rising trendline.
Click Here To View April 05, 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 Slightly Bearish Position due to narrow gap between rival soft edibles oils, it may hovering in the range of MR4,000 to MYR4,400 per ton.
