Malaysia: Palm oil set for weekly gain as dry weather hurts yield prospects

Published 2023년 6월 16일

Tridge summary

Malaysian palm oil futures experienced a four-day consecutive rise, with expectations to increase by 11% weekly due to adverse production conditions. Dry weather has impacted palm and U.S. soybean crops, leading to the benchmark palm oil contract's significant gain. The impact of water stress in Sabah, Malaysia's largest palm oil-producing state, due to early signs of El Nino, and labor shortages has further affected yields. Concurrently, dry weather in the U.S. Midwest has caused concerns for soybean production. This situation has influenced prices in related oils, as they compete in the global vegetable oils market, with palm oil finding support in a rally in South American soy oil and bullish trends in European rapeseed and sunflower oil markets. Additionally, increased purchases of palm oil from top buyer India and a recent sharp cut in India's base import prices of palm oil have supported the market.

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

Original content

Malaysian palm oil futures soared on Friday for a fourth day, setting it on course for an 11% weekly jump, as dry weather conditions curbed the prospects of palm and U.S soybean production. The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 229 ringgit, or 6.53%, to 3,737 ringgit ($809.58) a metric ton by the midday break, its highest since May 10. Palm oil estates in Sabah, Malaysia’s largest producing state of the commodity, are experiencing water stress from early signs of El Nino, cutting yields and exacerbating the impact of under-fertilising and labour shortages seen over the past three years. In the United States, a stretch of dry weather following planting season has stressed crops across the Midwest, raising concerns that the forecasted record soybean harvest will fall below expectations. Soyoil prices on the Chicago Board of Trade BOcv1 rose 1.1% following a 4.4% overnight surge. Dalian’s most-active soyoil ...

Source: Hellenic Shipping News