News

Malaysian palm oil slips to over two-week low on subdued demand and weaker crude

RBD Palm Oil
Malaysia
Market & Price Trends
Published Apr 16, 2024

Tridge summary

Malaysian palm oil futures have seen a significant decline, reaching their lowest point in over two weeks, primarily due to weak global demand and lower crude oil prices. Despite a temporary boost from Chinese purchases, the market's downward trend persisted. The benchmark palm oil contract for June delivery fell by 1.87% to 4,202 ringgit per metric ton. This downturn comes amidst a backdrop of tightening inventories, with Malaysia's palm oil stocks hitting a 10-month low at the end of March, even as exports surged and production increased by 10.57%. However, production is expected to drop in April due to the Ramadan and Eid al-Fitr holidays, which could further strain inventories. The decline in crude oil futures also diminishes palm oil's appeal as a biodiesel feedstock, affecting its market performance along with related oils.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Malaysian palm oil futures fell onMonday to their lowest closing in over two weeks, weighed down by lacklustreglobal demand and weaker crude as traders shrugged off data indicating tightening inventories. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange closed down 80 ringgit, or 1.87%, to 4,202 ringgit ($879.63) a metric ton, its lowest closing since March 29. “Market got some support from the resumptionof Chinese palm oil buying on Friday but other destinations were lacking charm,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group. Malaysia’s palm oil stocks at the end of 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. Crude palm oil production gained 10.57% to 1.39 million tons for the period, while palm oil exports ticked up 28.61% to 1.32 million tons, ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.