Futures for Malaysian Palm Oil Rise Again on the Exchange
Futures for Malaysian palm oil demonstrated a rise for the second consecutive time on Thursday, March 23, thanks to the resilience of the Dalian market and published export data.
This is reported by AgroReview
“Futures rose amid Dalian in anticipation of export data, which will later impact the market,” noted a trader from Kuala Lumpur.
The benchmark palm oil contract FCPO1, scheduled for delivery in June, increased by 26 ringgit (0.59%), reaching 4415 ringgit (997.97 USD) per ton at the close of trading on the Bursa Malaysia derivatives exchange. Meanwhile, the most active soybean oil contract in Dalian fell by 0.62%, while the palm oil contract CPO1 rose by 0.93%. At the same time, soybean oil prices on the Chicago commodity exchange dropped by 0.73%.
Impact of Competitors on the Market
Prices for palm oil reflect the overall price dynamics of other edible oils competing for market share in the global vegetable oil market. According to independent inspection company AmSpec Agri Malaysia, Malaysian palm oil exports from March 1 to March 20 decreased by 5.0%. Another surveying company, Intertek Testing Services, recorded a 14.2% decline in exports.
Moreover, Indonesia plans to increase the export duty on palm oil from 3% to 7.5% to ensure a mandatory increase in the use of oil in biodiesel fuel. Malaysia has kept the April export duty on crude palm oil at 10% and raised the base price, according to information on the Malaysian Palm Oil Council’s website.
Oil Prices and Their Impact
Oil prices also rose due to positive demand forecasts in the U.S., as fuel inventories decreased more than expected. The strengthening of the U.S. dollar made palm oil more competitive in the biodiesel market.
It is worth noting that the ringgit strengthened by 0.16% against the U.S. dollar, increasing the cost of the commodity for foreign buyers. ($1 = 4.4240 ringgit)
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