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Malaysia: Palm oil prices remain low due to reduced exports, which limits the growth of prices for soybean and sunflower oil

Published May 21, 2024

Tridge summary

Palm oil futures in Malaysia are at low levels and may decrease further due to a drop in exports. For the period 1-15 May, Malaysia's export of palm oil products fell by 5.2% to 600,8 thousand tons. The government, however, reduced the export duty on crude palm oil from 8% to 0%, leading to lower export prices. Soybean and sunflower oil quotes are also under pressure. In May, the base price of crude palm oil was reduced from 4273,93 ringgit/t to 3956,06 ringgit/t. Meanwhile, July futures for soybean oil on the Chicago stock exchange rose by 3.7% to 995 $/t. The average price of sunflower oil for delivery to buyers increased by 0.8% to $856/t over the week.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Futures for palm oil in Malaysia during the week traded at a low level, and may fall further amid declining exports. This increases the pressure on the quotations of soybean and sunflower oil. For 1-15 may, Malaysia reduced compared to the same period in April, the export of palm oil products by 5.2% to 600,8 thousand tons according to the surveyor Intertek Testing Services, and according to estimates of Societe Generale de Surveillance (SGS) – up to 427 thousand tons. July futures for palm oil on the Bursa exchange in Malaysia on Friday rose by 2.3% to 3892 ringgit/t or 831 $/t (+0.7% for two weeks) amid rising oil prices. On the stock exchange in Dalian, contracts for palm oil rose by 0.37%, soybean – by 0.54%. Malaysian Government left in June the export duty on crude palm oil at 8%, but reduced the base price from 4273,93 ringgit/t in may to 3956,06 ringgit/t or 845,13 $/t in June, which will contribute to lower export prices. July futures for soybean oil on the Chicago stock ...
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