Palm Oil Midday Market Closed Lower

SINGAPORE:As weaker rival vegetable oils weighed on prices, Malaysian palm oil futures midday market  closed lower on Thursday, to extend losses for a fourth straight session.

the benchmark midday palm oil contract for delivery in May on the Bursa Malaysia Derivatives Exchange had dropped 16 ringgit, or 0.37 percent, to 4,164 ringgit, which is equivalent to $920.39.

Dalian’s most dynamic soyoil contract fell 1.44%, while its palm oil contract slid 1.85%. On the Chicago Board of Trade, the price of soy oil was up 0.44 percent.

As they compete for a share of the global market for vegetable oils, palm oil is affected by changes in the prices of related oils.

On March 7 and 8, Kuala Lumpur hosted the largest palm oil conference in the world, which was watched by global buyers, sellers, analysts, and government officials.

According to James Fry, chairman of commodities consultancy LMC International, on Wednesday, benchmark crude palm oil futures in Malaysia will average 3,760 ringgit a tonne in 2023, down from 4,920 ringgit in 2022 due to pressure from lower gasoil prices.

Also Read : Palm Oil Imports May Jump In Indian On Lower Prices

According to industry analyst Dorab Mistry, Malaysian palm oil will trade between 4,000 and 5,000 ringgit ($1,106) per tonne from now and August due to Indonesia’s ambitious biodiesel mandate, which will keep stocks tight in the first half of 2023.

Thomas Mielke, head of analyst firm Oil World, stated at a conference on Wednesday that while growth in palm oil output has slowed, the market for vegetable oils is expected to tighten for a year beginning in the middle of 2023 as demand rises for Indonesia to produce biodiesel.

According to a statement made on Wednesday by the Indonesian Palm Oil Association (GAPKI), Indonesia’s palm oil exports are expected to decrease in 2023 as the country expands its use of the tropical oil in biodiesel. This will reduce the surplus that is available for sales overseas.