Palm oil ends at near 6-week low on higher output in Malaysia, slower demand outlook

Palm Kernel Oil
Market & Price Trends
Published Apr 17, 2024

Tridge summary

Malaysian palm oil futures have declined for the third consecutive session, hitting a six-week low, influenced by expectations of increased production and reduced demand. The benchmark contract for July delivery fell by 1.62% to 4,047 ringgit per ton, the lowest since March 7. Despite a significant decrease in Malaysia's palm oil stocks at the end of March, production and exports saw a notable increase. However, the surge in export demand observed in March is not expected to continue, affected by the competitive pricing of alternative edible oils and a decrease in festive demand. Additionally, the price movements of related oils like soyoil, which also saw declines, are impacting palm oil prices due to 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 extended losses for a third straight session on Tuesday, closing at its lowest in nearly six weeks in anticipation of improving production and softer demand. The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange closed down 67 ringgit, or 1.62%, at 4,047 ringgit ($844.89) a ton, its lowest close since March 7. Malaysia’s palm oil stocks at end-March fell 10.68% from the previous month to 1.71 million metric tons, the lowest in 10 months, as a surge in exports overshadowed output, according to Malaysian Palm Oil Board data on Monday. Production increased by 10.57% to 1.39 million tons for the period, the data showed, while exports jumped 28.61% to 1.32 million tons. Output in the world’s second-largest producer is expected to improve in the second quarter due to favourable weather patterns and improved productivity of newly hired foreign labour, MIDF Research said in a note. But analysts said the strong ...
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