Palm prices fall as India rejects premium prices and funds drive the market
Malaysian palm futures declined on Friday, but were still on track to have their best week in over 16 months. India pulled back from purchasing due to a growing premium for soft oils. Fund positions are driving the current prices. During the midday break, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for delivery in January fell 16 ringgit or 0.35% to 4,587 Ringgit per metric ton. The contract is on track to achieve its largest weekly gain since June 2023. A Mumbai-based trader at a global trading house stated that palm oil is currently selling at a premium to other soft oils.
Palm surges on data from cargo surveyors and rival oils, logging a 4th weekly gain
Malaysian palm futures gained more than 2% Friday, logging a fourth consecutive weekly gain. This was due to stronger rival edible oils as well as positive data from cargo surveyors. The benchmark palm-oil contract for December delivery at Bursa Malaysia's Derivatives exchange rose by 117 ringgit or 2.76% to 4,350 Ringgit ($1,015.41) per metric ton. This week, the contract increased by 1.16%. Darren Lim is a commodities analyst with Singapore-based Philip Nova. He said that the market's performance was influenced by several factors including the robust export data from cargo surveyors covering the period Oct.
Palm oil prices rise on data from rival oils and cargo surveyors, a 4th week gain.
Malaysian palm futures were up on Friday, and on course for a fourth consecutive weekly gain. This was boosted by stronger rival edible oils as well as positive data on exports from cargo surveyors. By midday, the benchmark palm oil contract on Bursa Derivatives exchange for December delivery rose by 89 ringgit or 2.1% to 4,322 Ringgit ($1,008.63), a metric tonne. The contract has gained 0.51% this week. Darren Lim is a commodities analyst with Singapore-based Philip Nova. He said that the market's performance was influenced by several factors including the robust export data from cargo surveyors covering the period Oct.
Palm reverses losses due to higher crude oil prices
Malaysian palm futures recovered from early losses and ended higher for the second session in a row on Monday, due to higher crude oil price. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange ended the session with a gain of 1.05%, ending the day at 4,345 Ringgit ($1,015.66) per metric ton. Earlier in the morning it had fallen as low as 4,247 Ringgit. The contract gained 3.87% in the last two sessions. A Kuala Lumpur-based broker said that the firmer crude oil price…
Palm falls for second session due to stronger Ringgit, but still posts monthly gains
The Malaysian palm futures market ended the month in a positive mood, but on Monday it declined, the second session in a row of losses. A stronger ringgit dampened the mood, and traders were cautious, as palm oil continues to be valued at a premium compared to other oils. At the close, the benchmark palm oil contract on Bursa Derivatives Exchange for December delivery was down 53 Ringgit (1.31%) to 3,998 Ringgit ($970.15) per metric ton. The contract gained 0.53% for September despite losing 3.71% over the last two sessions. Paramalingam Supramaniam is a director of Selangor brokerage Pelindung Bestari.
Palm oil prices fall on stronger Ringgit; traders are cautious about high premiums against rival oils
The price of palm oil in Malaysia fell for the second session on Monday, as a result of a stronger Ringgit. Traders remained cautious, however, because palm is still priced higher than other oils. The benchmark palm-oil contract for December delivery at the Bursa Derivatives exchange was down 21 Ringgit or 0.52% during the midday lunch break, to 4,030 Ringgit ($982.21) per metric ton. Paramalingam Supramaniam said that palm prices were too high in comparison to other oils. They need to be brought down to the level of rivals to ensure that palm can compete in the market.
China Opening May Spark Iron Ore Markets
In the relatively short space of the past decade the paper iron ore market has grown from virtually nothing to exceed the physical market, but now the industry is grappling with what comes next. While the growth in iron ore futures and exchanged-cleared swaps has been impressive, iron ore is still a long way behind other commodity markets, such as crude oil and some agricultural products, where paper trade exceeds physical by large multiples. There are two main paper markets for iron ore, the well-established Singapore Exchange (SGX) futures and swaps…
Shanghai Crude Futures off to Cautiously Good Start
The new Shanghai crude oil futures have been trading for just over a month and have so far managed to build up reasonably strong volumes, but this success may only mask some wider concerns. The yuan-denominated contracts were launched on March 26 by the Shanghai International Energy Exchange (INE) and are enjoying trading volumes averaging around 80,000 a day, with the open interest around 16,000. The INE contract offers seven grades of Middle Eastern and domestic crude for delivery to various locations in China, the world's largest oil importer.
China's Crude Futures Face Challenges: Russell
China's new crude futures contract faces a mountain of obstacles to overcome if it is to establish itself as a viable benchmark for trading with the world's largest oil importer. The Shanghai International Energy Exchange (INE), which is part of the Shanghai Futures Exchange, said on Feb. 9 it would launch the much-delayed contract on March 26. In theory, this will give China a powerful tool to shake up global crude trading by offering pricing and hedging in the heart of the world's biggest market for imported crude.
China Trims Appetite, but Coal Prices Unfazed
There are indications that China's appetite for imported coal may be starting to ease in line with Beijing's efforts to limit the use of the fuel over winter in a bid to lower air pollution. China's seaborne imports were 18.26 million tonnes in November, down from 20 million in October, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts. It's the fourth consecutive monthly decline for seaborne coal imports, according to the data, and it comes as the authorities impose productions cuts on coal-consuming industries such as steel.
Coking Coal Bubble to Deflate, Unlikely to Burst
When the price of a commodity rises by 117 percent in a mere 15 weeks, it's generally a sign that something is amiss in the market, and coking coal's recent stellar run is no exception to this rule. The spot price of Australian premium hard coking coal has surged from $83.40 a tonne on May 31 to $180.90 on Sept. So far this year, the price of the fuel used mainly to make steel has leapt by 131 percent, making it the best performer among significant commodities. As with any price surge, there are solid reasons for a rally, but the gains have now reached a point where they have entered the realms of silliness.
