Indonesia’s Palm Oil Producers Only Reached 43.56% of the Domestic Obligation Market (DMO) Target
Kasan, the acting director general of domestic trade for the Indonesian Trade Ministry, stated that just half of the oil palm domestic obligation market (DMO) realization objective had been met. To create cooking oil that will be distributed in large quantities, the government has increased the palm oil DMO to 450K MT. Cooking oil DMO from producers reached 196,032MT or 43.56% of the overall DMO allocation of 450K MT as of February 20 at 18:00 (Indonesia Western Time).
Indonesia Suspends Two-Thirds of Palm Oil Exports Ahead of Ramadan and Eid
According to a report by the United States Department of Agriculture (USDA), the Indonesian government has stopped two-thirds of palm oil exports in an effort to guarantee domestic cooking oil supplies ahead of Ramadan and Eid. As a result of the government's goal to increase domestic cooking oil supply by 50% to 450K MT in the months leading up to Ramadan and Eid celebrations, a projected 400–800K MT of the country's palm oil exports had to be halted from 6 February to 1 May.
USDA Forecasts Palm Oil Consumption in Indonesia to Increase in the Season 2022/23 to 19.4MMT
According to the US Department of Agriculture (USDA), Indonesia's consumption of palm oil is anticipated to rise to 19.4MMT in the 2022/23 crop due to rising demand from the biodiesel industry. The required mixing ratio was raised by the government. Although cooking oil demand is anticipated to rise during Ramadan, the USDA boosted its predicted palm oil consumption for 2022/23 by 100K MT to 6.8 M MT.
Malaysian Palm Oil Gains for Second Day on US Soybean Oil and Crude Strength
The price of U.S. soy oil and crude oil increased on Thursday, helping Malaysian palm oil futures to a seven-week high and settle higher. By the end of trading on Thursday, February 23, the benchmark FCPOc3 palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange had increased by 89 ringgit, or 2.15%, to USD 955.77/MT.
Malaysia Keeps March Crude Palm Oil Export Duty at 8%
Malaysia has decreased the reference price while keeping the March export tax for crude palm oil at 8%. The second-largest exporter of palm oil in the world came up with a reference price of USD 828.57/MT for March. The reference price for February was USD 869.42/MT. For crude palm oil with a price range of USD 502.46-535.95/MT, the export tax structure starts at 3%. When prices are greater than USD 770.43/MT, the maximum tax rate is set at 8%.
Malaysian Palm Oil Rises for Third Day on Dalian Gains With Stronger Crude Oil
On Monday, Malaysian palm oil futures increased for a third straight session to reach their highest closing in over seven weeks, following the rise in rival Chinese edible oils and crude oil prices. Gaining 32 ringgits, or 0.77%, the benchmark palm oil contract FCPO1! for May delivery reached USD 940.15/MT, after gaining 5.11% in the last two sessions.
Malaysian Palm Oil Prices Hit a 6-Week High in W7
On the Malaysian stock exchange, palm oil futures increased by 5% on Thursday and Friday (16 and 17 December) and by 7.2% over the course of the previous two weeks, reaching a six-week high amid expectations of a pick-up in exports from Malaysia amid reduced supplies from Indonesia and as a result of a 2.3% weekly decline in the value of the Malaysian ringgit. As a result, April palm oil futures on Bursa Malaysia increased 1.5% on Friday to 4,131 ringgit/t or USD 933/MT, trading at 4,170 ringgit/MT, the highest level since January 4, 2023.
Egypt Will Cooperate With Malaysia in the Field of Palm Oil Production
Egypt hopes to benefit from Malaysia's expertise in the production of palm oil. Egypt is prepared to carefully examine the manufacturing of palm oil and learn from Malaysian market players. Therefore, an African country can become a regional center for the production of "palms" and their further export to neighboring markets.
China’s Quanzhou to Procure Malaysian Palm Oil
Recently, a group from Quanzhou, China, met with the Malaysian Palm Oil Board (MPOB) to purchase palm oil in order to meet China's demand during the Q3 of 2023, which is when food production is at its greatest. The participants at the meeting decided to intensify their cooperation, particularly in promoting supply chain growth for the Malaysian oil palm industry and the Fujian food industry, as well as palm oil purchases. With palm oil serving as the key component in China's snack food sector, Quanzhou is one of the main production hubs for bakeries, confectioneries, and snack foods.