Speculators continue to warm up palm oil prices

This week, October palm oil futures on the Malaysian stock exchange reached a record 5,000 ringgit/ton, or.1,200/ton, amid speculative factors of export growth in September by 35-40% to 1.6 million tons and a likely reduction in stocks in Malaysia. At the same time, December futures on Wednesday rose 2.8% to 4,872 ringgit/t or 1 1,168/t, but yesterday fell to 4,849 ringgit/t or.1,162/t.

However, analysts believe that such a rapid increase in palm oil prices does not correspond to real demand from the biodiesel industry. According to S&P Global Platts, the price difference between palm oil and gas oil still remains at a level unacceptable for biodiesel production. In order for interest in biodiesel to increase again, the price of crude oil should rise to 1 120-130/barrel.

However, the growth of oil prices has stopped, and a sharp drop in gas prices on European stock exchanges increases pressure on oil prices.

S & P Global Platts estimates that the price of SRO palm oil in the Indian and Indonesian markets is 1 1,250/ton FOB Indonesia and approximately W 1,280/ton CFR West Coast India, which limits the further rise in the price of Malaysian palm oil.

According to S&P Global Platts, Indonesia in September reduced exports of palm oil by 33% to 2.241 million tons, while Malaysia increased it by 35-40% to 1.6 million tons, as buyers from India and China preferred cheaper Malaysian oil.

Palm oil production in Indonesia, which is the world's largest producer, declined in September due to heavy rains and floods that made harvesting difficult at the height of the production season.

December soybean oil futures on the Chicago Stock Exchange rose again by 2.6% to 1 1,365/ton, following palm oil prices.