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Palm Oil: Hard to Find Positive News; Market Weakness Remains Unchanged
Release time:
2019-03-07 17:02
Source:
According to a March 6 report by Jiadele Information, after last week’s five-day losing streak, the palm oil market has entered a period of narrow-range consolidation this week. As of press time, the mainstream price for 24-degree palm oil in Guangzhou stood at 6,050 yuan per ton, down 50 yuan per ton from mid-last week. Downstream buyers and intermediaries remain cautious, while sellers generally lack confidence in the outlook, keeping trading activity across regions subdued. Jiadele monoglyceride.
Despite the recent general rise in temperatures across China, weak macroeconomic conditions have kept downstream demand for palm oil sluggish. Meanwhile, with imported shipments arriving steadily at ports, domestic palm oil inventories have climbed to over 1.3 million tons—far above normal levels. Supply remains markedly abundant, making it difficult to accelerate destocking in the short term. Molecular distillation monoglycerides.
On the futures front, early in the week, bullish buying on dips pushed BMD crude palm oil May‑contract futures to close up 44 ringgit at 2,411 ringgit. Supported by higher futures prices, Malaysian palm oil FOB spot prices also rose. Specifically, 24‑degree palm oil for March shipment was quoted at $813 per tonne, up $6 per tonne, while 44‑degree palm oil for March delivery gained $10 per tonne to $740 per tonne. On Tuesday, as investors remained cautious ahead of the annual meeting, BMD crude palm oil May‑contract futures closed down 0.6% at 2,399 ringgit. The FOB spot market followed suit, with 24‑degree palm oil for March shipment slipping $3 per tonne to $810 per tonne, while 44‑degree palm oil held steady at $740 per tonne. www.cardlo.cn
Looking ahead, with the Malaysian government recently raising the March export duty on crude palm oil to 4.5%, Malaysian palm oil inventories are under upward pressure, which is likely to cap price gains in the Malaysian market. Meanwhile, major producing countries are approaching their traditional peak‑production season. Taken together, these factors suggest that the palm oil market will remain sluggish in the near term.
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