MethodologyContact usSupportLogin
CPO futures in Malaysia traded in both directions on Thursday, with most contract months ending marginally higher at the close of trading, while the most-active July contract recovered from earlier losses to close nearly unchanged amid strength in related oils and as traders weighed expectations of improving production and a lackluster April export pace.
The newly most-active July CPO futures contract on the Bursa Malaysia Derivatives dipped by 2 ringgit per tonne to close at 4,495 ringgit ($1,137) per tonne, virtually unchanged from the previous day’s settlement of 4,497 ringgit per tonne.
The July contract had closed 0.96% lower to 4,454 ringgit per tonne at the close of the morning trading session and traded widely between 4,444-4,517 ringgit per tonne.
Related vegoil futures were trading higher, with CME soybean oil futures firmer during Asia hours, extending overnight gains while Chinese vegoil futures were higher across the board.
The most-active September palm olein futures contract on the Dalian Commodity Exchange rose by 0.32% to close at 9,402 yuan ($1,378) per tonne, while the equivalent soybean oil contract rose by 0.57% to close at 8,448 yuan per tonne.
The September rapeseed oil futures contract on the Zhengzhou Commodity Exchange rose by 0.28% to close at 9,403 yuan per tonne.
The Malaysian ringgit closed 0.11% weaker against the US dollar.
Malaysia’s palm oil production for April continues to show signs of improvement from March levels, with estimates from the Southern Peninsular Palm Oil Millers Association (SPPOMA) for April 1-15 reported 27.42% higher than in the same period a month earlier.
In the cash market, offers for May-shipment CPO out of Indonesia were heard at $1.227.50-1,235 per tonne FOB Indonesia, while offers for May-shipment olein were around $1,160 per tonne FOB Indonesia.
Ma-shipment offers for CPO to India were also heard at $1,255 per tonne CFR west coast India (WCI) with buying ideas around $1,235 per tonne CFR WCI, while offers for June-shipment were around $1,260 per tonne CFR WCI.
Discussions for April-shipment cargoes were also at $1,230-1,242.50 per tonne CFR WCI.
Meanwhile, soybean oil for May-July shipment was traded at $1,255-1,258 per tonne CFR WCI, with offers for May-shipment soybean oil at $1,295-1,305 per tonne CFR WCI, and for June-July shipment at $1,272-1,275 per tonne CFR WCI.
Offers for August-September shipment soybean oil were at $1,245-1,265 per tonne CFR WCI, while October-December shipment offers were at $1,240-1,250 per tonne CFR WCI.
Sunflower oil offers to India were around $1,435-1,445 per tonne CIF LW for Black Sea origin and $1,420 per tonne CIF LW for Argentinian origin for May and June shipment.
In the Americas, Chicago Mercantile Exchange soyoil futures soared on Thursday April 16 in the second consecutive jump higher with underlying support from surging crude oil prices.
The front-month May CME soybean oil contract rose by 2.84% day on day to 69.52 cents per lb at 1pm US Eastern time, while the most-liquid July contract rose in tandem to 69.21 cents per lb. Those levels are just slightly lower than contract-high levels just over the 70 cents per lb psychological mark.
Tight soybean supplies in the US continued to underpin prices while a surge in crude oil prices provided additional support.
Brent and West Texas Intermediate contracts were up by 4-5% day on day. Energy markets remained extremely volatile in session market by an apparent move back into adding risk premium linked to the possibility that current US-Iran talks will not resolve the situation in the Strait of Hormuz.
Futures brokers told Fastmarkets that the soyoil market was found additional support by the release of data regarding Renewable Identification Numbers (RINs) generation in March with no biomass-based diesel imports reported.
The May soymeal contract on the CME fell by 0.84% day on day to $331.60 per short ton at 1pm US Eastern time, while the most-liquid July contract fell by 1.15% to $327.40 per ton.
In the physical market in South America, Fastmarkets heard trades of Argentine soyoil for May loading at discounts of 16.5 and 17 cents per lb to May futures and then a rumor that another batch of Argentine soyoil for April loading traded at a discount of 16.75 cents to May futures. The June basis was assessed at discounts of 17.4 cents per lb in Argentina and 17 cents per lb in Brazil, both to July futures.In the soymeal front, Fastmarkets heard after its assessment time two rumoured paper trades of Brazilian soymeal for June loading at a discount of $5 per short ton to July futures and for July loading at a discount of $10 per short ton to the corresponding futures.
The June soymeal basis in Brazil fell $0.5 per short ton compared with the previous assessment, at a discount of $3 per short ton to July futures.
In Argentina, the corresponding soymeal basis fell $3 per short ton from the previous price, assessed at a premium of $6 per short ton to the same futures contract.
As of 6:00pm Central European time, Euronext May rapeseed futures were trading at €516.75 ($608) per tonne, up by €7.50 per tonne from the last market close.
FOB Rotterdam rapeseed oil (RSO) prices surged along the curve on Thursday, supported by strength in the global vegetable oils complex and by fresh gains in underpinning crude oil and gas oil prices, which rose amid a lack of progress on a potential peace deal between the US and Iran.
European rapeseed futures in Paris and Canadian canola futures were also higher at the time of writing, buoyed by firmer crude, which added further support to RSO in the European complex.
For May, RSO offers were heard at €1,135-1,140 per tonne during the session, with bids at €1,110-1,128 per tonne, compared with offers at €1,125 per tonne and bids at €1,098 per tonne on Wednesday.
For the May-June-July (MJJ) strip, offers were indicated at €1,120-1,128 per tonne during the session, while bids were heard at €1,105-1,118 per tonne, compared with offers at €1,115 per tonne and bids at €1,095 per tonne on Wednesday.
Down the curve, August-September-October (ASO) offers stood at €1,095 per tonne, with bids at €1,080-1,086 per tonne. This compared with offers reported at €1,082-1,090 per tonne and bids heard at €1,075-1,077 per tonne on Wednesday.
Prices for FOB sunflower oil (SFO) across six EU ports rose along the curve on Thursday, supported by a firmer tone in rival soft oils and by slightly renewed market activity, which sources said was driven particularly by EU buyers seeking physical vegetable oil volumes for May.
“Buyers in some countries have started getting active, and there have been some trades in the past few days, as some are looking for physical coverage for May in the EU,” one trader told Fastmarkets.
Trades for the July-August-September (JAS) period were heard at $1,465, $1,470 and $1,475 per tonne during the session.
For May-June (MJ), offers during the session ranged $1,470-1,480 per tonne, while bids ranged $1,455-1,475 per tonne, compared with offers at $1,470-1,490 per tonne and bids at $1,450-1,455 per tonne on Wednesday.
For JAS, offers were reported at $1,475-1,480 per tonne, with bids heard from $1,455 per tonne to as high as $1,475 per tonne, compared with offers at $1,470-1,490 per tonne and buy-side interest at $1,450-1,455 per tonne on Wednesday.
Down the curve, October-November-December (OND) offers stood at $1,325-1,330 per tonne, with bids heard at $1,300-1,320 per tonne. This compared with offers at $1,320-1,340 per tonne and bids for the strip at $1,295-1,300 per tonne on Wednesday.
On a CIF Mersin basis, the sunflower oil market was largely unchanged, with Black Sea-origin offers heard around $1,400 per tonne against buyer ideas at $1,380–1,385 per tonne. Russia-origin sunflower oil was reported traded at $1,390 per tonne CIF Mersin on Wednesday
In other news, Turkey’s TMO has provisionally booked around 12,000 tonnes of crude sunflower oil for delivery April 27-May 22, with trader Aves reported to have sold the volume around $1,427 per tonne EXW Mersin (approximately $1,417 per tonne CFR), subject to final approval. In the previous tender, TMO purchased 12,000 tonnes for İskenderun/Mersin at $1,336.50 per tonne CFR and 6,000 tonnes for Tekirdag at $1,344 per tonne CFR.
Fastmarkets’ comprehensive coverage includes a wide range of veg oils and meals, including palm, coconut, cottonseed, peanut, sunflower and canola. Our dedicated team of price reporters and analysts monitors these markets daily to provide you with the most up-to-date pricing information. Discover more.