Malaysian palm oil futures rose more than 2% on Tuesday
Malaysian palm oil futures rose more than 2% on Tuesday ahead of a public holiday, breaking a two-day losing streak as the upcoming implementation of Indonesia’s B50 biodiesel program bolstered the market.
The benchmark FCPO3 palm oil contract for September delivery rose 93 ringgit, or 2.07%, on the Bursa Malaysia Derivatives Exchange, reaching 4,578 ringgit (US$1,126) per metric tonne at the close of trading. The Bursa Malaysia Derivatives Exchange will be closed on Wednesday for a public holiday.
The potential introduction of Indonesia’s B50 biodiesel program is supporting short-term sentiment, and an overnight rise in soybean oil prices further supported the market, said David Ng, a trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Indonesia will begin introducing ethanol-blended gasoline and tighten biodiesel content requirements to 50% on July 1.
The most actively traded soybean oil contract in Dalian rose 0.24%, while the palm oil contract rose 1.27%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.78%.
Palm oil prices are tracking those of competing edible oils as they compete for market share in the global vegetable oil market.
Oil prices fell to new three-month lows as markets weighed the prospects for resuming shipments through the Strait of Hormuz amid weakening physical demand and scant details of a preliminary agreement to end the war with Iran.
Lower oil prices make palm oil a less attractive feedstock option for biodiesel production.
The ringgit weakened 0.42% against the dollar, making the commodity cheaper for buyers with foreign currency.
According to a circular published on the Malaysian Palm Oil Council website, Malaysia lowered its July reference price for crude palm oil to a level that maintains the export duty at 10%.
According to cargo appraisers, Malaysian palm oil exports increased by 9.6% to 23.8% between June 1 and June 15.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.
You are welcome to get a 7-day free demo access!!!
Read also
United States, Brazil and China lead global food export rankings
US boosts purchases of Canadian canola products
Why Bulgaria Is Strengthening Its Position in the Black Sea Barley Market
Reopening of the Strait of Hormuz could trigger a surge in grain imports to the Pe...
Argentina rapidly expands beef exports to the US
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon