Palm oil drops 8% in a week, the worst drop for 19 months.
Malaysian palm futures fell on Friday, their biggest weekly drop in over a year. Weak soybean oil prices and concerns about demand weighed them down. At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery fell 132 ringgit or 2.77% to 4,640 Ringgit ($1,039.19). This is the second weekly decline in a row and the biggest weekly drop since April 2023. David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn.
Palm to drop for second week on weak soya, concerns about demand
Malaysian palm futures fell on Friday, and are headed for another week of losses. Weak soybean prices and looming concerns about demand have weighed them down. At midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery fell 81 ringgit or 1.7% to 4,691 Ringgit ($1,050.62) per metric ton. David Ng is a proprietary trader with Kuala Lumpur's trading firm Iceberg X Sdn. Bhd. He said that the crude palm oil futures were lower because of lower soybean oil prices…
Palm extends its losses amid China trade fears and weak demand
Malaysian palm futures fell for the second session in a row on Thursday as concerns about U.S. Tariffs on China, and a weakened demand for palm, sparked a sale on the vegetable oil market. At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery fell 46 ringgit or 0.96% to 4,769 Ringgit ($1,069.28). The contract fell by 2.21% during the previous session. Paramalingam Supramaniam is the director of Selangor brokerage firm Pelindung Bestari.
Palm oil prices are down by more than 2% due to a weaker demand for exports and Chicago soyoil.
Malaysian palm futures dropped more than 2% Wednesday due to a weaker Chicago soyoil price and sluggish demand for exports. The benchmark contract for palm oil delivery in February on the Bursa Derivatives exchange lost 107 Ringgit or 2.17% to $4,817 Ringgit ($1,077.87), a metric tonne, at the close. The contract gained 0.51% during the last session. David Ng said that the market fell on a weaker export demand, and a decline in Chicago soybean oil, according to a proprietary trader with Kuala Lumpur's trading firm Iceberg X Sdn. Bhd.
Palm prices fall on weaker demand for exports and Chicago soyoil.
Malaysian palm futures fell on Wednesday due to a weaker Chicago soyoil price and sluggish demand for exports. Investors are awaiting cargo surveyor data in order to determine the direction of prices. By midday, the benchmark palm oil contract on Bursa Derivatives Malaysia Exchange for February delivery had fallen 33 ringgit or 0.67% to 4,891 Ringgit ($1,094.92) per metric ton. The contract gained 0.51% during the last session. David Ng said that the market fell on a weaker export demand…
Palm declines due to Dalian palm's weakness
The price of Malaysian palm oil futures fell on Monday due to the weakness of Dalian palm oil. At midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery fell 71 ringgit or 1.41% to 4,982 Ringgit ($1,115.79). The previous session saw a 2.5% increase in the contract. A Kuala Lumpur based trader explained that the weakness in the palm market is due to spread adjustments against Dalian's Palm Olein.
Palmettos rise after three days of falling, and is set to experience its first weekly decline in four
Malaysian palm-oil futures were up on Friday, after three sessions in a row of losses. However, they are on track for their first weekly drop in four weeks. The market is awaiting export data to provide further clues. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had gained 14 ringgit or 0.28% to 4,978 Ringgit ($1,112.15) per metric ton. The contract is down 2.41% for the week. A Kuala Lumpur based…
Palm oil drops for the third consecutive day due to weaker competitors and selling pressure
Malaysian palm futures ended lower on Thursday for the third session in a row, due to weakness in the prices of vegetable oils listed in Dalian and pressure from sellers in crude palm (CPO). The benchmark Bursa Derivatives Exchange palm oil contract closed down 23 ringgit or 0.46% at $4,964 Ringgit ($1,108.53). Paramalingam Supramaniam is the director of brokerage Pelindung Bestari in Selangor. He said that the CPO market was suffering from the constant selling pressure. This has generated interest and kept offers high for the local olein.
Palm falls for the third consecutive day due to weaker competitors and selling pressure
Malaysian palm futures fell for the third session in a row on Thursday. This was due to the weakness of prices in rival vegetable oils listed in Dalian and pressure from sellers in crude palm (CPO). By midday, the benchmark contract for palm oil on Bursa Malaysia's Derivatives exchange was down by 82 ringgit (1.64%) to 4,905 Ringgit ($1,093.40). Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari said that the CPO market is suffering from the constant selling pressure.
Bursa Malaysia plans to launch futures on used cooking oil in December
The director of Bursa Malaysia Derivatives Exchange said that the new contract for used cooking oil would be launched as soon as December. It is in its final stages. The regulatory approvals are still pending," said Mohd Saleem Bakas, director of the oilseeds conference in Dalian. He said that the contract could launch in December 2025 or the first quarter, depending on approvals. BMD’s UCO futures will be added to a contract for soybean oil that was launched by the company in March.
Indonesia confirms the B40 biodiesel Plan to be implemented in January 2025
As part of its "quick win" programs, the Indonesian government confirmed to lawmakers that it will implement a mandatory 40% biodiesel blend with palm oil based fuel in January 2025. The plan was presented by Energy Minister Bahlil lahadalia who told a hearing in parliament that the government expected to implement a mandate B50 by 2026. Analysts have predicted that the plan to increase biodiesel from its current 35% blend is part of a reduction in fuel imports. This, they say, will increase palm oil demand and prices.
Palm oil suffers heavy losses in Dalian competitors oils
The prices of vegetable oils rivals in Dalian have been falling heavily, which has led to a fall in the palm oil futures in Malaysia for a second consecutive session. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had fallen 114 ringgit or 2.27% to 4,912 Ringgit ($1,103.57). Prices have dropped sharply below the 5,000-ringgit mark, which is exacerbated due to weakness in the Chinese vegetable oil market. This indicates a consolidation after the recent bull market from Sept. 18 through Nov.
Palm oil closes at its highest level since mid-June 2022
Malaysian palm futures closed on Monday after new buying interest emerged and short coverings were covered. The benchmark palm-oil contract for January delivery at the Bursa Derivatives exchange gained 94 Ringgit or 1.84%, to 5,195 Ringgit ($1,178.81), the highest price since mid-June 2022. A Kuala Lumpur-based broker said that the price started to rally after the futures reached 5,100 ringgit. This was due to the emergence of new purchasing interest and the covering of short positions. The futures then rose to a new record of 5,200 ringgit.
VEGOILS - Palm oil has the highest weekly gain since June 2022, with a gain of more than 4%.
Malaysian palm futures rose for the third week in a row on Friday, as an industry conference held in Bali released projections for production and palm oil prices for 2024-2025. This week the contract increased by 4.77%, which is the highest gain since June 20, 2022. On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for January delivery gained 148 Ringgit or 2.99% to $5100 ringgit (1164.38 USD) per metric ton. The futures opened with a gap and met resistance above 5,000 Ringgit.
Biodiesel production will tighten the supply of palm oil in Indonesia, but it is expected to recover by 2025.
Analysts predict that Indonesia's palm-oil production will recover next year after a drop expected this year. However, prices are likely to remain high due to a planned increase in the country's mandate for biodiesel, they said. This year, the benchmark palm oil price in Malaysia increased by more than 35%. This is due in part to the slowdown of production, but also to plans by Indonesia to increase their biodiesel blend mandatory for domestic sales from 35% to 40% starting January. The biodiesel program aims to reduce fossil fuel imports.
Mistry: Malaysia palm oil futures will be around or above 5,000 Ringgit by mid-2025.
Dorab Mistry, a leading industry analyst, said that until June 2025, Malaysian palm oil benchmark futures will likely trade at or above 5,000 ringgit per metric ton, due to tight supply and strong demand. Mistry, speaking at the Indonesia Palm Oil Conference held in Bali, said that the global vegetable oil demand is expected to increase by 6.5 millions tons in 2024-2025 (Nov-Oct). Meanwhile, the supply is projected to rise by 3,000,000 tons.
Palm oil mirrors Dalian competitors; set to gain third week
The price of palm oil in Malaysia rose for the third week running on Friday, as Dalian vegetable oils grew. Early trade saw the benchmark contract for palm oil for January delivery at Bursa Derivatives Exchange rise 51 ringgit, or 1.03% to 5,003 Ringgit per metric ton, a rise for a third consecutive session. This week, the contract has gained 2.7%. The futures opened with a gap and met resistance above 5,000 Ringgit. It remained supported at this level despite the broader vegetable oil rally…
Cargill estimates that China's palm oil demand in 2024 will drop 30% year-on-year.
A Cargill executive said that the demand for palm products in China will drop by 30% between 2024 and 2019. This is because high prices have made it less appealing than soyoil, while vegetable oil demand stagnates. The benchmark palm oil price in Malaysia has risen over 30% this year, despite the fact that production in Indonesia's top producer is falling and there are positive sentiments about its plans to expand its biodiesel mandate. Ryan Chen…
Dalian palm oil is supported by other oils
The Dalian palm oil market, which is a rival to the Malaysian palm oils market, has seen gains on Thursday. On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for January delivery gained 33 ringgit (0.67%) to 4,950 Ringgit ($1,125.00). Dalian's palm oil contract, which is the most active contract, gained 2.8% while soyoil prices rose by 1.78%. Chicago Board of Trade soyoil prices were down by 0.56%. As palm oil competes to gain a share of the global vegetable oil market…
Palm oil prices end higher due to rival oils' strength and a weaker Ringgit
Malaysian palm futures closed higher on Wednesday. This was supported by gains made in vegetable oils that are competing with palm oil and the weaker ringgit. Investors will be looking for clues at an industry conference starting in Indonesia later this week, and data from the Malaysian Palm Oil Board due next week. On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for January delivery gained 112 Ringgit (2.33%) to 4,918 Ringgit ($1,117.73).
