MEDIA & RESOURCE CENTER

Headwinds aplenty for palm oil

16-Jul-2018
THE resilience of the plantation sector is being put to the test by a series of bearish factors, which has seen crude palm oil (CPO) prices heading south in recent weeks. Industry players are generally spooked by the drastic fall in CPO prices, which is a key indicator to gauge their operational costs and profit margins. The price of CPO has fallen by about 14% year-to-date, and is currently trading at RM2,147 per tonne.

Malaysian palm oil/Vegoils: Market factors to watch Monday July 16

16-Jul-2018
Malaysian palm oil futures fell to their lowest in nearly three years on Friday evening in a fourth session of losses, tracking declines in related edible oils. U.S. soybean futures slid to fresh lows on Friday and the most-active contract closed at the lowest in nearly a decade after a government report reinforced concerns that the trade dispute with China will dent exports and lead to a build-up in stocks. Oil prices rose about 1 percent on Friday as strike actions in Norway and Iraq hit supplies, but futures were set for a second straight week of decline after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions.

Palm oil seen under pressure in 2H

16-Jul-2018
Palm oil prices, which have fallen to their lowest in three years, are expected to remain under pressure in the second half of 2018 (2H18), with a limited increase seen, according to analysts. On last Friday’s close, the benchmark palm oil third-month contract for September delivery fell RM38 to settle at RM2,159 per tonne, its lowest closing price in the futures market since September 2015. On a month-on-month basis, this translates into a sharp RM172 or 7.4% decline, from RM2,331 on June 12.

Palm hits lowest in almost three years on weaker Dalian oils

13-Jul-2018
Malaysian palm oil futures dropped to their lowest in nearly three years on Thursday, tracking overnight declines in related edible oils, before trimming some losses on the back of a weaker ringgit. A weaker ringgit, palm's currency of trade, typically lends support to the edible oil by making it cheaper for foreign buyers. The ringgit weakened by 0.1% against the dollar to 4.0395 on Thursday evening. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 0.8% at RM2,186 (US$541.16) a tonne at the close of trade for a third straight session of losses.

Malaysian palm oil price hits lowest in almost 3 years

13-Jul-2018
Malaysian palm oil futures dropped to their lowest in nearly three years on Thursday, tracking overnight declines in related edible oils, before trimming some losses on the back of a weaker ringgit. A weaker ringgit, palm's currency of trade, typically lends support to the edible oil by making it cheaper for foreign buyers. The ringgit weakened by 0.1 percent against the dollar to 4.0395 on Thursday evening.

Malaysia lowers August crude palm oil export tax to 4.5 percent

12-Jul-2018
Malaysia lowered its export tax on crude palm oil for August to 4.5%, the Malaysian Palm Oil Board said on Wednesday, citing the national customs department. The export tax in July was 5%. Malaysia is the world's second-largest producer of palm oil.

Palm oil inventory expects to rise five pct to 2.30m tonnes in July

12-Jul-2018
Palm oil inventory stock should rise five per cent to 2.30 million tonnes with an anticipation of a supply growth of 1.69 million tonnes this month. Kenanga Research said production should also rebound 23 per cent to 1.64 million tonnes, followed by the recovery in export volume of 18 per cent to 1.33 million tonnes in July. As of end-June, Malaysia palm oil inventory was 2.19 million tonnes with 13 per cent declined in mom in export volume, attributed by weak export to China. “We expect the trend reversal on palm oil stocks to contribute to softer crude palm oil (CPO) prices in the second-half (2H) 2018. With risks (soft soybean price, higher palm production, higher Indonesian supply) outweighing opportunities (supportive crude oil price, better Indian and biodiesel demand),” it said in a research report.

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