Malaysian palm oil climbs for third day to one-week peak on output worries

Published 2023년 3월 30일

Tridge summary

Malaysian palm futures experienced a reversal of early gains due to the anticipated tightening of production, although the increase was limited by a report indicating that the oil's premium against rival oils may soon fade. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 0.6% to its highest closing in a week. However, the rise was capped by the expectation that top producer Indonesia will likely ease export curbs after Ramadan, leading to a potential discount for palm oil. Meanwhile, production is expected to decline due to a estimated 22.9% decline in output during March 1-25, and exports from Malaysia have seen an increase during the same period.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm futures reversed early gains on Wednesday in anticipation of tightening production, although the rise was capped by a report highlighting the vegetable oil’s fading premium against rival oils. Palm oil’s rare premium over rival rapeseed oil and sunflower oil is likely to be short-lived and should slip into a discount once top producer Indonesia eases export curbs after Ramadan, industry participants told Reuters on Tuesday. The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.6%, to 3,709 ringgit ($839.90) a tonne. Palm rose for a third straight session to its highest closing in one week. Dalian’s most-active soyoil contract rose 1.1%, while its palm oil contract DCPcv1 gained 1.2%. Soyoil prices on the Chicago Board of Trade were down 0.04%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Production in the world’s second-largest ...

Source: Hellenic Shipping News