Palm oil prices rose 4.9% for the week as inventories in Malaysia fell to a 7-month low

RBD Palm Oil

Malaysia

Market & Price Trends

Published Mar 13, 2024

Tridge summary

Malaysia's palm oil futures have surged by 1% to RM4,131/t or $883/t, marking the highest level since July 2023, driven by anticipation of a report on production, exports, and inventories. The Malaysian Palm Oil Council has reported a decline in palm oil production, exports, and stocks in February. Furthermore, the USDA has lowered its forecast for palm oil exports from Malaysia and Indonesia. However, the high price of palm oil compared to soybean and sunflower oil could potentially lead to a decrease in its exports in the near term.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Last week, palm oil futures in Malaysia rose in anticipation of a report on production, exports and inventories due on March 10. Yesterday, May palm oil futures on Bursa Malaysia rose another 1% to RM4,131/t or $883/t (+4.9% for the week), the highest since July 24, 2023. According to the Malaysian Palm Oil Council (PMOC), in February, palm oil production in the country decreased by 10.18% compared to January to a 10-month low of 1.26 million tons, exports by 24.75% to 1.02 million tons, and stocks - by 5% to a 7-month low of 1.92 million tons. In the March report, USDA experts reduced the forecast of palm oil exports from Malaysia by 0.4 to 15.8 million tons (15.36 million tons in FY 2022/23), and from Indonesia by 0.5 to 27.7 (28, 07) million tons Palm oil is still more expensive than soybean and sunflower, so its exports will continue to decline in the near term, especially given the seasonal increase in soybean oil production in Argentina. Chicago May soybean oil futures ...

Source: Graintrade