Malaysian palm oil snaps three-day decline

Published 2023년 3월 10일

Tridge summary

Malaysian palm oil futures saw a rebound on Thursday, ending a three-day losing streak as market focus shifted towards the upcoming palm oil board data. The benchmark palm oil contract for May delivery closed at 0.57% higher. The market is closely watching the upcoming MPOB data and the potential impact of Indonesia's biodiesel policy and El Nino weather pattern on global palm oil inventories. Analysts predict the palm oil prices to trade between 4,000 and 5,000 ringgit per tonne until August, driven by Indonesia's biodiesel mandate. However, prices may drop by the end of the year due to lower gasoil prices, as per some analysts. Meanwhile, production estimates for Malaysia and Indonesia in 2023 have been adjusted upwards.

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

Original content

Malaysian palm oil futures reversed early losses on Thursday, snapping a three-day decline as traders shifted their focus to the upcoming palm oil board data, after a highly-anticipated conference in Kuala Lumpur did not indicate a clear price trend. The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange closed up 24 ringgit, or 0.57%, to 4,204 ringgit ($930.29) a tonne. The Malaysian Palm Oil Board (MPOB) is scheduled to release its February supply and demand data on Friday. Indonesia’s biodiesel policy and the likely emergence of the El Nino weather pattern could further strain global inventories of palm oil, lifting prices later this year, leading industry officials and analysts said at a conference on Wednesday. Malaysian palm oil is expected to trade between 4,000 and 5,000 ringgit ($1,106) per tonne from now until August as Indonesia’s ambitious biodiesel mandate will keep stocks tight in the first half of 2023, analyst Dorab ...

Source: Hellenic Shipping News