Palm oil declines ahead of key supply and demand data

Palm Kernel Oil
Market & Price Trends
Published Apr 16, 2024

Tridge summary

Malaysian palm oil futures experienced a downturn in early Monday trading, with the benchmark contract for June delivery falling by 22 ringgit to 4,260 ringgit per metric ton. This decline is attributed to market anticipation of upcoming supply and demand data from the Malaysian Palm Oil Board and first-half April export estimates. Additionally, a significant reduction in India's palm oil imports, due to higher prices leading to a preference for sunoil, and a decrease in crude oil prices, which diminishes palm oil's appeal as a biodiesel feedstock, are influencing market trends. The article also highlights the impact of the performance of related oils, such as soyoil, on palm oil prices, given their competition in the global vegetable oils market.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures eased in early trading on Monday, as traders awaited key supply and demand data due later in the day. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit or 0.51% to 4,260 ringgit ($892.15) a metric tonby 0313 GMT. FUNDAMENTALS * The Malaysian Palm Oil Board is scheduled to release its widely-watched March supply and demand data later in the day. * Cargo surveyors are also expected to release exports estimates for April 1-15. * India’s palm oil imports in March plunged to their lowest level in 10 months as higher prices prompted refiners to substitute palm oil with sunoil, resulting in sunoil imports reaching the second-highest on record, a leading trade body said. * Oil prices fell on Monday as market participants dialled back risk premiums following Iran’s attack on Israel late on Saturday, which the Israeli government said caused limited damage. O/R * Weaker crude oil futures make palm a ...
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