Palm oil prices rise amid dwindling inventories

Palm oil futures on the Malaysian exchange rose on data showing declining inventories in Indonesia and India and on speculative buying by traders after a sharp drop in prices over the previous two weeks.

 

According to analysts, crude palm oil quotes have crossed the lower support line in the uptrend and the base line of the double top price pattern, signaling a transition to bearish momentum.

 

March palm oil futures on the Bursa exchange in Malaysia rose by 13 ringgit/t to 4,555 ringgit/t or $1,015/t yesterday.

 

According to GAPKI, in October, palm oil production in Indonesia increased by 9.69% compared to September from 4.415 to 4.843 million tons, exports increased by 19.33% from 2.131 to 2.543 million tons, domestic consumption increased by 4.73% from 1.989 to 2.083 million tons, while ending stocks decreased by 4.61% from 2.623 to 2.502 million tons.

 

According to Saveraaintl estimates, in India, during December 1-15, vegetable oil stocks in ports increased by 9% to 1.05 million tons, in particular crude soybean oil - by 88% to 251.8 thousand tons, while crude palm oil stocks decreased by 4% to 283.4 thousand tons, and crude sunflower oil - by 15% to 247.7 thousand tons. This indicates that the country is increasing imports of cheap soybean oil.

 

In Chinese ports, stocks of edible oils decreased from 1.77 to 1.75 million tons between December 1 and 20, including palm oil from 471 to 465 thousand tons, soybean oil from 841 to 831 thousand tons, and rapeseed oil from 461 to 456 thousand tons.