Dalian competitors face escalated pressure from Palm, yet Chicago soyoil's weakness caps Palm's advancement.
Hey there! Let's chat about the surge in Malaysian palm oil futures.
Malaysian Palm Oil Futures Continue to Climb 📈
The August delivery contract for palm oil on the Bursa Malaysia Derivatives Exchange started Monday higher, up by 0.59%, at 3,940 ringgit ($930.34) per metric ton. This marks the fourth consecutive week of growth, underscoring strong market support.
Why the Rally? 🤔
- India's Import Duty Reduction: India, a major palm oil consumer, decreased its basic import duty on crude palm oil from 20% to 10%, effective May 2025. This step, along with an effective duty of 16.5%, encourages increased CPO imports, propelling demand and fueling higher palm oil prices.
- Biodiesel Mandates: Indonesia's biodiesel mandate (B50) and similar policies worldwide tighten global palm oil supply by reducing exports. Additionally, rising crude oil prices, due to geopolitical tensions, further support palm oil prices as they drive biodiesel production.
- Substitution Effect: High prices for soybean and sunflower oils create a demand shift towards cheaper palm oil alternatives.
- Market Sentiment and Exchange Performances: Strengthening performances on Asian markets, particularly on the Dalian Commodity Exchange, and a rally in crude oil prices reinforce palm oil's allure for biodiesel production. Furthermore, a weaker Malaysian ringgit makes palm oil more competitive on the international market.
It's important to note that concerns about output and stock levels persist, yet their impact appears to have been outweighed by the demand-side and policy-driven factors discussed above. These factors contribute to the ongoing surge in Malaysian palm oil futures.
市場情緒和價格指數在2025年5月起消化油的比較廣泛減率，Eng?> India's import duty on crude palm oil decreases from 20% to 10%, creating a more competitive market for Malaysian palm oil, sparking higher demand and, consequently, raising prices. Meanwhile, Indonesia's expanded biodiesel mandate (B50) and similar policies worldwide drive down palm oil exports, tightening global supply, and supporting prices. Additionally, the rising cost of soybean and sunflower oils encourages buyers to shift toward palm oil as a more cost-effective alternative.
+++在亞洲的股票市場和傻油市場始lean-up again at the end of May and early June, the international demand for palm oil starts to increase again, leading it to produce further gains. Coupled with a weaker Malaysian ringgit, palm oil becomes even more appealing to international buyers, leading to increased demands and stockpilingoil stocks.
However, it is essential to remember that concerns about output and stock levels still exist. Despite these issues, the factors driving demand outweigh the supply concerns, resulting in a sustained rally in Malaysian palm oil futures.
Taking all factors into account, the upward trend in Malaysian palm oil futures appears to be driven by a combination of robust demand, favorable policy changes, and shifting global market dynamics. As these factors continue to evolve, it will be interesting to see how Malaysian palm oil prices perform in the coming weeks. 📈
- The decrease in India's import duty on crude palm oil and Indonesia's biodiesel mandate have contributed to a tightening in global palm oil supply, while the rising cost of soybean and sunflower oils has shifted demand towards palm oil, driving up its prices in the finance industry.
- A weaker Malaysian ringgit, the strengthening performances on Asian markets, and a rally in crude oil prices have made palm oil more competitive and appealing for biodiesel production within the energy sector, further boosting its prices and sustained rally in Malaysian palm oil futures.
