Palm Oil Prices Extend Gains Thanks to Futures’ Uplift

Palm Oil Prices Extend Gains Thanks to Futures’ Uplift

Spot palm oil and products markets continued to move higher on Wednesday due mostly to ongoing strength in palm oil futures in Malaysia, traders said. U.S. Gulf palm oil and palm olein price assessments crossed above 52 cents per pound to levels not seen since May 2023. Palm oil values in the region climbed about two cents from last week.

The benchmark May palm oil futures contract closed in on 4,200 ringgit per tonne on Wednesday, to settle up 66 ringgit per tonne at a one-year high of 4,195 ringgit per tonne. Robust crude oil prices, a weaker ringgit against the U.S. dollar, and lingering worries of tighter stocks all supported palm oil values. 

The palm oil price rally has caused many in the feed and oleochemical sectors to move into the cheaper animal fats markets. The lower price of tallow, for example, compared to palm oil has led to some livestock reformulations.

 

On the CME, U.S. soybean oil…

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!

Blog

04.16.2024

RIN dashboard

RIN dashboard

Reviewing the RIN dashboard ahead of the March EMTS release. The most recent Energy Information Administration (EIA) energy outlook and the Environmental Protection Agency (EPA) RIN production data provides...

04.16.2024

Cash SBO market weighs on DCO market

Cash SBO market weighs on DCO market

It was an active day in the distiller’s corn oil (DCO) market on Tuesday with pressure from the cash soybean oil market weighing on FOB truck values. Trading was broadly...

04.16.2024

MBM and BM mixed to softer on lower demand

MBM and BM mixed to softer on lower demand

For Tuesday April 16, animal proteins were mixed with most market sources indicating pressure on meat and bonemeal (MBM) and bloodmeal (BM). Market sources indicated mixed demand on MBM...

Latest Tweets