MUMBAI(Commoditiescontrol): This week prices were highly volatile on currency, concern about palm oil demand and South America soy production.
Indian Rupee has appreciated by 0.04 percent during the week which has weighed on palm oil prices at higher level.
Malaysian palm oil futures closed up 2.80 percent this week on account of improving demand at lower level ahead of Ramzan Festival.
Generally FOB price gap between palm oil and soy oil remains on higher side of around $100-120 during summer season but now the price gap is of $67.
But, this year palm oil prices were drawing support from weak production as an impact of last year El-Nino dryness, which has affected palm yields and fruits.
On the other hand, market participants are still hopeful for Ramzan demand from Asian Countries to revive by Mid May.
Demand from India, the second biggest consumer, likely to remain low in spot market as end-consumers are buying as per requirement.
In domestic market, demand for palm oil is slowly improving as marriage season is going on and also the peak summer period has started due to which palm does not solidifies so oil refiners use more of palm oil in adulteration.
In domestic market, RBD Palmolein prices was up 1.05 percent at kandla port in dollar while prices were steady in Rupee terms.
In futures market this week, crude palm oil most active May delivery contract on Multi Commodity Exchange (MCX) closed 0.52 percent higher.
NEXT WEEK: Volatility likely to continue in palm oil market ahead of MPOB, USDA and 1-10 May palm oil exports data from SGS and ITS.
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