Palm oil jumps most in five months on China's move to relax curbs

Published 2022년 12월 27일

Tridge summary

Palm oil prices surged, marking the largest increase since July, following China's decision to end quarantine for inbound travelers starting January 8, 2023. This development, indicating a move towards normalcy after three years of Covid-19 restrictions, has fueled optimism about a potential uptick in demand for edible oils in China, a key consumer, ahead of the Lunar New Year. However, the rapid transition from the Covid Zero policy has led to a surge in infections, raising concerns about short-term demand stability. Nonetheless, palm oil futures experienced a 7.2% rise, reaching a three-week high of RM4,104 a ton in Kuala Lumpur.

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

Original content

(Dec 27): Palm oil posted its biggest advance since July as China's decision to end quarantine for inbound visitors buoyed expectations that demand in one of the world's top consumers of edible oils will improve. China will no longer subject inbound travellers to quarantine from Jan 8, 2023, putting the country on track to emerge from three years of self-imposed global isolation under a Covid Zero policy that battered the economy and stoked historic public discontent. Demand for edible oils should rise in China in the run-up to the Lunar New Year festivities in late January, said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental. "The Covid situation is still not that good on the ground in China, but the country is also concerned about its economic conditions." The abrupt shift from Covid Zero policy in China is resulting in rising ...

Source: Theedgemarkets