Crude palm oil stocks hit a record high, so why are prices still elevated?
Although stocks hit a record high, crude palm oil prices remain elevated
(Nongye Zhifu Wang) According to industry analysts, although Malaysia's crude palm oil stocks hit a record high in October, this had little impact on crude palm oil prices. So far this year, crude palm oil futures prices have risen 32%, but are still 20% below the record high of 2789 ringgit set in May.
The Malaysian Palm Oil Board said on November 10 that Malaysia's palm oil stocks in October hit a ten-month high of 1.974 million tonnes, compared with 1.579 million tonnes in September.
Traders expect crude palm oil prices may fluctuate in the range of 2000 ringgit to 2300 ringgit from now until the end of the year. However, if crude palm oil stocks exceed 2 million tonnes, storage capacity will be challenged and crude palm oil prices will be affected.
Rabobank recently said that due to increasingly bearish fundamentals, crude palm oil prices may fall in the coming months. Palm oil production in Malaysia and Indonesia is showing a seasonal growth trend, so stocks will rise further.
Although the price gap between palm oil and soybean oil has begun to widen again, offering consumers an opportunity to switch to palm oil, South American soybean production is expected to hit a record high, which will put pressure on the entire oilseed market.
The Malaysian Palm Oil Board said on November 10 that Malaysia's palm oil stocks in October hit a ten-month high of 1.974 million tonnes, compared with 1.579 million tonnes in September.
Traders expect crude palm oil prices may fluctuate in the range of 2000 ringgit to 2300 ringgit from now until the end of the year. However, if crude palm oil stocks exceed 2 million tonnes, storage capacity will be challenged and crude palm oil prices will be affected.
Rabobank recently said that due to increasingly bearish fundamentals, crude palm oil prices may fall in the coming months. Palm oil production in Malaysia and Indonesia is showing a seasonal growth trend, so stocks will rise further.
Although the price gap between palm oil and soybean oil has begun to widen again, offering consumers an opportunity to switch to palm oil, South American soybean production is expected to hit a record high, which will put pressure on the entire oilseed market.