A Review of Asian Palm Oil spot Market on November 11: Palm Oil spot Market prices fell

(agricultural get Rich Network) November 11, Asian palm oil spot market prices fell, extending the recent decline, mainly due to slower demand in China, Malaysia palm oil stocks are likely to continue to rise.

On November 11th, the crude palm oil futures market of the Malaysia Derivatives Exchange (BMD) closed down and trading was sluggish. The increase in palm oil production and stocks continues to dampen market sentiment. But crude palm oil prices performed better than expected, leading some traders to question the extent of future declines. The benchmark January crude palm oil contract closed 7 ringgit lower at 2235 ringgit / ton.

January / February / March 24 degree refined palm oil is quoted for US $700. crude palm oil for immediate delivery is quoted at 2170 ringgit, up 10 ringgit.

Analysts say demand in China has slowed significantly recently as it enters winter and palm oil tends to solidify at low temperatures, raising concerns that palm oil stocks in Malaysia may continue to rise.

Malaysia's palm oil bureau said Malaysian palm oil production rose 27% in October from the previous month to 1.99 million tons, an all-time high. Palm oil stocks rose 25% in October to a 10-month high of 1.98 million tons.

The level of palm oil stocks in October was much higher than the market expected of 175-1.8 million tons.

Malaysia exported 92100 tons of palm oil to China from November 1 to 10, down 6.1 percent from 98031 tons in the same period last month and 22.5 percent higher than the same period last year, according to SGS.

In Indonesia, palm oil prices have been relatively stable recently.