15 June 2017
Futures Swing as Investors Assess June Export Demand

Palm oil for Aug. delivery drops as much as 0.7% to 2,440 ringgit/ton. gains as much as 0.3% to 2,463 ringgit on Bursa Malaysia Derivatives.

  • Most-active contract unchanged at 2,456 ringgit by 4:01pm in Kuala Lumpur; -21% YTD
  • Volumes are thin and the market is trading at fair price considering the value to soybean oil, says Marcello Cultrera, institutional sales manager at Okachi Malaysia in Kuala Lumpur 
    • While the market widely expected weaker exports between June 1-15 and confirmation should be priced in, it’s clearly still bearish: Cultrera
  • NOTE: Malaysia’s June 1-15 palm oil exports -17.6% m/m to 508,960 tons: Intertek
  • NOTE: Palm Demand Seen Mixed as Analysts Assess Post-Ramadan Buying
  • Soybean oil for Dec. delivery on Chicago Board of Trade -0.2% to 32.49c/lb; Nov. soybeans on CBOT -0.2% to $9.37 1/4/bu
  • Soybean oil’s premium over palm oil ~$140/ton vs avg ~$103 over past year: data compiled by Bloomberg
  • Palm oil’s premium over gasoil at ~$159/ton vs avg ~$180 over past year: data compiled by Bloomberg
  • Sept. refined palm oil on Dalian Commodity Exchange closes -0.1% at 5,238 yuan/ton; Sept. soybean oil +0.1% to 5,840 yuan/ton


Okachi (Malaysia) Sdn. Bhd.

Level 8, Pavilion KL,
168, Jalan Bukit Bintang,
55100 Kuala Lumpur.

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