Quotes for palm and soybean oil continue to grow amid strong speculative demand
Following the rapid rise in prices for soybean oil in Chicago, palm oil continued to rise in price on forecasts of a reduction in production in Malaysia and data on increased exports.
December futures for palm oil on the Bursa exchange in Malaysia on Friday rose 3.7% to the highest since June 30, 2022 level 4868 ringgit/t or 1113 $/t (+5.7% for the week, +14.4% for two weeks).
Forecasts of reduced production and increased exports in October increased speculative demand, especially amid the expected decline in sunflower oil production.
According to the surveyor Intertek Testing Services (ITS), in October Malaysia increased the export of palm oil products by 14.5% compared to September to the highest level since October 2020, 1.55 mln tonnes. The final data on production, exports and stocks of palm oil in Malaysia will be released on November 10, but traders expect further decline in stocks.
December futures for soybean oil on the Chicago stock exchange for three sessions rose by 8.1% to the highest since July 2024 level of 1020 $/t (+4.8% for the week and for the month) amid increasing demand for the cheapest oil on the market.
Last week, India has stepped up purchases and purchased 150 thousand tons of soybean oil, the price of which remain lower than for palm and sunflower.
oil Prices at the end of the week resumed speculative growth on the news about Iran’s preparations for a strike on Israel from Iraq in the coming days.
Crude oil prices resumed speculative growth at the end of the week on news that Iran is preparing to strike Israel from Iraq in the coming days.
The soybean oil market is awaiting the US elections, as Democrats and Republicans have different positions on supporting biofuel production. The uncertainty of the US biofuel policy and the lack of guidance on the new clean fuel tax credit are forcing biofuel producers to postpone purchases of soybean oil until early 2025.
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