A Review of Asian Palm Oil spot Market on November 12: spot prices rise steadily

On November 12, the spot market price of palm oil in Asia rose steadily, mainly due to the acceleration of spot trading and the strengthening of Malaysian crude palm oil futures.

The crude palm oil futures market on the Malaysia Derivatives Exchange (BMD) closed higher on November 12 as torrential rains in oil palm producing areas could disrupt local oil palm harvests, creating a bullish atmosphere for the market and prompting short sellers to cover. The benchmark January crude palm oil contract closed 10 ringgit higher at 2245 ringgit / ton.

Analysts say the rise in palm oil prices in Malaysia has attracted buyers in the Indonesian spot market, who are worried that palm oil prices could rise further.

24 degrees refined palm oil delivered in January / February / March traded at US $710, compared with US $715, US $717.50 and US $720 in April / May / June, and FOB, the port of Malaysia.

Crude palm oil for immediate delivery was quoted at 2220 ringgit, up 40 ringgit.

Amol Tilak, an analyst at Kotak Commodity Services, said palm oil prices could fluctuate in the range of 2200 ringgit to 2400 ringgit in the next two weeks and could rise further if demand in China and India improves.

Recently, torrential rains have occurred in some major producing areas of Malaysia, which has caused great difficulties for the harvest and transportation of local oil palms.

According to the Malaysian Meteorological Bureau, there have been recent torrential rains in Kelantan, Terengganu and Pahang, and the rain is likely to continue until early next week.