Palm oil spot prices fall: November 11 Asian market review
November 11 Asian palm oil spot market review: palm oil spot market prices fall
(Agricultural Wealth Network) On November 11, palm oil spot market prices in Asia fell, extending the recent decline, mainly because demand from China slowed and Malaysia's palm oil stocks may continue to rise.
On November 11, the crude palm oil futures market on the Malaysia Derivatives Exchange (BMD) closed lower, with sluggish trading. Rising palm oil production and stocks continued to weigh on market sentiment. However, crude palm oil prices performed better than expected, which led some traders to question the extent of future declines. The benchmark January crude palm oil contract fell 7 ringgit to close at 2,235 ringgit/tonne
24-degree refined palm oil for January/February/March delivery was quoted at 700 US dollars, while crude palm oil for immediate delivery was quoted at 2,170 ringgit, up 10 ringgit.
Analysts said China has now entered winter, and palm oil tends to solidify at low temperatures, so demand from China has slowed markedly recently, raising market concerns that Malaysia's palm oil stocks may continue to rise.
The Malaysian Palm Oil Board said Malaysia's palm oil production in October rose 27% from the previous month to 1.99 million tonnes, a record high. Palm oil stocks in October rose 25% to 1.98 million tonnes, the highest level in ten months.
The October palm oil stock level was far above market expectations of 1.75-1.8 million tonnes.
According to SGS data, Malaysia exported a total of 92,100 tonnes of palm oil to China from November 1-10, down 6.1% from 98,031 tonnes in the same period last month and up 22.5% from the same period last year.
In Indonesia, palm oil prices have been relatively stable recently.
On November 11, the crude palm oil futures market on the Malaysia Derivatives Exchange (BMD) closed lower, with sluggish trading. Rising palm oil production and stocks continued to weigh on market sentiment. However, crude palm oil prices performed better than expected, which led some traders to question the extent of future declines. The benchmark January crude palm oil contract fell 7 ringgit to close at 2,235 ringgit/tonne
24-degree refined palm oil for January/February/March delivery was quoted at 700 US dollars, while crude palm oil for immediate delivery was quoted at 2,170 ringgit, up 10 ringgit.
Analysts said China has now entered winter, and palm oil tends to solidify at low temperatures, so demand from China has slowed markedly recently, raising market concerns that Malaysia's palm oil stocks may continue to rise.
The Malaysian Palm Oil Board said Malaysia's palm oil production in October rose 27% from the previous month to 1.99 million tonnes, a record high. Palm oil stocks in October rose 25% to 1.98 million tonnes, the highest level in ten months.
The October palm oil stock level was far above market expectations of 1.75-1.8 million tonnes.
According to SGS data, Malaysia exported a total of 92,100 tonnes of palm oil to China from November 1-10, down 6.1% from 98,031 tonnes in the same period last month and up 22.5% from the same period last year.
In Indonesia, palm oil prices have been relatively stable recently.