Malaysian palm oil futures were trading around the MYR 4,000 per tonne mark, rebounding further from their recent lows of MYR 3,700, amid concerns about tightening supplies and prospects of higher pent-up Ramadan demand. Domestic production plunged almost 15% to 1.39 million tonnes in January, the smallest amount in nearly a year, with tropical storms and floods disrupting harvesting. Hence, Malaysia’s palm oil inventories will likely have tumbled to a five-month low in January. Analysts expect a further decline towards 1.9 million tonnes by the end of the first quarter. On top of that, rival Indonesia said it would review the ratio of its palm oil export quota amid rising prices of domestic cooking oil. Senior cabinet minister Luhut Pandjaitan stated Indonesia would suspend some existing palm oil export permits until the end of April as exporters had accumulated large quotas for shipments from late last
year.
Crude Palm oil is vegetable oil, and it’s used primarily in processed food. Indonesia and Malaysia constitute 85% of the world’s palm oil supply, followed by Nigeria, Thailand and Colombia. The contract size is 25 metric tonnes, traded at Bursa Malaysia. The Palm oil prices in Trading Economics are based on over-the-counter (OTC) and contract-for-difference (CFD) financial instruments. Our market prices are intended to provide you with a reference rather than as a basis for trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so.
Source: www.tradingeconomics.com