Malaysian palm oil futures reversed early losses on Thursday, ending a three-day fall, as traders shifted their focus to the next palm oil board information MPOB, following a meeting that wasn’t as planned in Kuala Lumpur and didn’t show a clear price pattern.
The benchmark palm oil contract for delivery in May on the Bursa Malaysia Derivatives Exchange closed up 24 ringgit, or 0.57 percent, at 4,204 ringgit ($930.29) a tonne.
Malaysian Palm Oil
A dealer headquartered in Kuala Lumpur claims that the market is under some pressure from weaker Dalian and crude oil. The downside is nevertheless limited by a weak ringgit and the anticipation of a more dramatic decline in palm inventories in February.
The Malaysian Palm Oil Board (MPOB) is expected to release information on supply and demand for February on Friday.
- The Bursa Malaysia Derivatives Exchange closed up 24 ringgit, or 0.57 percent in May.
- Malaysian palm oil will cost between 4,000 and 5,000 ringgit ($1,106) a tonne between now and August.
- The cost of soy oil increased by 0.7 percent on the Chicago Board of Trade
Prominent industry figures warned that the development of the El Nino weather pattern and Indonesia’s biodiesel strategy could put more pressure on the world‘s palm oil inventories and drive up prices later this year.
At the conference, analyst Dorab Mistry predicted that Indonesia’s ambitious biodiesel requirement will keep supplies low in the first half of 2023. Because of this, it is projected that Malaysian palm oil will cost between 4,000 and 5,000 ringgit ($1,106) a tonne between now and August.
Thomas Mielke, an economist, predicts that in 2023, Malaysian production will increase by 600,000 tonnes to 19 million tonnes, while Indonesian production will increase by 1.2 million tonnes to 47.7 million tonnes.
The dealer claimed that the market is still taking into account the analysts’ conference projection. Both the soy oil contract and the palm oil contract are down in Dalian, by 1% and 0.5 percent, respectively. The cost of soy oil increased by 0.7 percent on the Chicago Board of Trade.