PALMOILMAGAZINE, SINGAPORE – The Crude Palm Oil (CPO) contract price at the Malaysia Derivatives Exchange saw an uptick on Tuesday, November 7, 2023, following two consecutive sessions of decline.
This rise was attributed to the weakening Malaysia ringgit and indications of heightened demand from China.
As reported by Reuters, the CPO reference price, represented by the code FCPOc3 for January 2024 delivery at the Malaysia Derivatives Exchange, surged by RM 21 per ton, marking an approximate 0.5% increase, reaching RM 3,774 (equivalent to US$ 810.22) per metric ton during the lunch break.
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Mitesh Saiya, the Manager of Trade at Kantilal Laxmichand and Co in Mumbai, remarked on the favorable CPO pricing in comparison to soybean, stating, “CPO is more cost-effective than soybean due to lower soybean stocks, increased biodiesel consumption, and ongoing maintenance processes at numerous biodiesel mills,” as quoted by Reuters.
Data from China Customs revealed that the country imported 5,16 million metric ton of soyoil in October 2023, increased 25% from last year because soyoil stocks from Brazil always came in the port on Tuesday.
The first ten month – imports in the second biggest importer country reached 82,42 million tons or increased 14,6% from the same period last year.
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The imports showed the increasing soyoil demands which compete with palm oil to get markets.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 also increased 0,6 %, CPO contract with the code DCPcv1 did too 1,2%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,4%.
Soybean harvest in USA which keeps increasing has something to do with its price. The harvest covered up 91%, the highest of the average harvest that reached 92% vyt surpassed the average harvest in the past five years that reached 86%.
Palm oil stock in Malaysia by the late of October 2023 reached the highest level since May 2019 because the increasing production covered up the increasing exports, according to Reuters’ survey last Friday. (T2)
