Palm oil closes higher on weather woes at oilseeds plantations

Published 2024년 5월 8일

Tridge summary

Malaysian palm oil futures experienced a rise for the second day in a row, reaching a peak not seen in over a week, primarily driven by continuous gains in soyoil prices due to adverse weather conditions in Brazil and Russia. The situation was further exacerbated by similar weather challenges in Indonesia, another major palm oil producer, contributing to the upward trend in palm oil prices. The benchmark palm oil contract for July on the Bursa Malaysia Derivatives Exchange saw an increase of 68 ringgit, achieving its highest close since April 25. This recovery comes after a significant drop in prices in April, attributed to weather-related disruptions in the edible oils market, particularly affecting soybeans in Brazil and Russia, and raising concerns over a potential shortage. Additionally, Indonesia's warning of possible extreme weather events poses a risk to palm yields, further influencing market dynamics.

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Original content

Malaysian palm oil futures rose for a second session to close at a more-than-one-week high on Tuesday, tracking sustained gains in soyoil on poor weather in Brazil and Russia, while key palm producer Indonesia’s adverse weather conditions also supported palm prices. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed up 68ringgit, or 1.76%, to 3,930 ringgit ($829.81) a metric ton, the highest close since April 25. After the massive sell-off of Malaysian palm oil in April, the market is re-pricing itself with weather vagaries in Brazil and Indonesia impacting edible oils, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Worries over soybeans shortage amid potentially crop-damaging weather in Brazil and Russia are pushing soyoil prices higher. Indonesia’s meteorological agency warned of potential extreme weather events occurring in the country from May 7-13 such as tornadoes and ...

Source: UkrAgroConsult