Weekly: RBD Palmolein Likely To Trade Higher Next Week

Mumbai (Commoditiescontrol) : Malaysian palm oil futures spiralled down on concerns of rising stockpiles in Malaysia and Indonesia.

The prices on BMD plunged up to a level of MYR2137 per ton on Thursday for most active December 2018 futures. The prices have declined by 8.33 percent after hitting their recent high of MYR2331 on September 5.

Meanwhile, Malaysian Palm Oil Board (MPOB) has estimated Malaysian palm oil stocks for August 2018, higher by 12.4% at 2.49 million tonnes.

The palm oil production for August month is estimated at 1.62 million tons, up 7.9 percent from July 2018.

While, Malaysian palm oil export is pegged at 1,099,583 tons, down 8.1 percent from July.

Following is the detailed estimate released on 12th September by MPOB

The data showed that palm oil stocks are surging, while export is deteriorating mainly due to the weakness in currencies of the emerging markets and lower enquiries from main buyers like India and China.

The currency depreciation coupled with higher import duties have made the import costlier for the major importer India and it reflected in the August export numbers.

The export estimates for September, however, seen encouraging as various agencies are projecting more than 70% rise in Malaysian palm oil exports for September 1-20 period.

At the same time, the production is also increasing but the demand is not at the same pace as which has raised fears that the September-end month stocks may hit record 7-month high.

Domestic RBD Palmolein Scenario

RBD palm olein prices during the week ended September 22, declined by Rs 15 to trade at Rs /10kg at Kandla port tracking bearish movement in BMD Crude Palm Oil futures and movement in rival oils.