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Key takeaways:
The most-active October CPO futures contract on the Bursa Malaysia Derivatives Exchange rose by 0.35% to close at 4,245 ringgit ($993) per tonne.
The most-active September palm olein futures contract on the DCE was little changed, edging down by 0.02% to 8,910 yuan ($1,236) per tonne. The equivalent soybean oil futures contract rose by 0.83% to 8,274 yuan per tonne.
The September rapeseed oil futures contract on the Zhengzhou Commodity Exchange was also marginally changed, closing 23 yuan lower to 9,524 yuan per tonne.
On a weekly basis, the most-active third-month CPO futures contract on the BMD fell by 0.66% from last Friday’s settlement of 4,273 ringgit per tonne.
The ringgit slipped against the US dollar on Friday for the sixth day in a row, which lent support to CPO futures as it made it more affordable to US currency holders.
Export figures from cargo surveyors SGS released on Friday showed Malaysian exports down by 25.4% in July to 896,362 tonnes compared with a month earlier. It is a bigger drop compared with the 6.71% decline and 9.68% decrease reflected by Intertek Testing Services and Amspec Agri respectively.
The latest figures from the Southern Peninsular Palm Oil Millers Association (SPPOMA) also showed production for full-July up by 7.07% compared with June. A bigger increase compared with the 5.25% increment for the first 25 days of July.
Market participants will be eyeing full-month estimates from the Malaysian Palm Oil Association (MPOA) expected next week which covers more planted area of Malaysia for ideas on July’s production. It is expected that palm oil inventories could see another month of stock-build at the end of July.
In the cash market, the last offers for August-shipment CPO were heard at $1,117.50 per tonne CFR West Coast India (WCI), $1,120 per tonne for September and $1,130 per tonne for October–December, all on the same basis.
In the late afternoon, CPO trades were heard concluded at $1,105 per tonne CFR East Coast India and $1,110 per tonne CFR WCI for August shipment.
At origin, discussions for CPO out of Indonesia for August shipment were at $1,065-1,080 per tonne FOB Indonesia through the day, while olein discussions for the same month were at $1,015-1,030 per tonne FOB Indonesia and $1,022.50-1,032.50 per tonne on the same basis for September.
In the Americas, soyoil futures fell on the CME, driven by a negative pressure from lower crude oil and technical selling. But part of the losses was capped by a plunge in the US dollar.
The most-liquid September CME soyoil contract went down by 1.39% on the day to 54.50 cents per lb at 1pm US Eastern time.
Crude oil extended losses after worse-than-expected US economic data, fueling speculation on more potential cuts by the Federal Reserve in the US interest rate for 2025. The data weighed on the US Dollar Index against other currencies, limiting the negative pressure on soyoil.
Market participants continued to adjust positions in a technical selling movement for the third session, after soyoil contracts reached a two-year high in the past few days, amid prospects of increased US biofuels demand potentially brought by policy changes.
Meanwhile, soymeal futures moved upward on the CME on product spreading after soyoil losses.
China purchased its third cargo of 30,000 tonnes of Argentine soymeal on Thursday July 31, at $345 per tonne CFR China, $20 per tonne lower than the previous trade concluded a week earlier, market sources told Fastmarkets.
The purchase comes as trade talks with the US continue, and Argentina’s reduction in export taxes for soybean and its derivative products came into effect on Friday.
Following the unprecedented “trial purchase” of a July-loading shipment on June 25 and the second trade for a September-loading Argentine soymeal on July 23, the negotiation of a third soymeal cargo for loading between September and October was concluded between Bunge and Xiamen C&D, according to sources.
The September CME soymeal contract went up by 1.54% on the day to $270 per short ton at 1pm US Eastern time.
In the physical market in South America, the September basis was assessed at a discount of 4.9 cents per lb to September futures in Argentina, while the corresponding basis in Brazil was assessed at a discount of 3.85 cents per lb to the same futures contract.
A paper trade of Brazilian soyoil for October loading was heard at a discount of 4.7 cents per lb to October futures, but unconfirmed until the publication of this commentary.
In the soymeal front, the September basis in Brazil was assessed at a discount of $5 per short ton to September futures. The corresponding basis in Argentina was assessed at a discount of $6 per short ton to the same futures contract.
As of 18:15 Central European Time, Euronext November rapeseed futures were trading at €475.50 ($550) per tonne, down by €2 per tonne from the previous session.
FOB Rotterdam rapeseed oil prices eased on Friday, with the curve continuing to flatten while still showing a slight carry structure.
In the August–September–October (ASO) period, offers were made lower at €1,036-1,045 per tonne compared with €1,038-1050 per tonne on Thursday. Bids were made at €1,030-1,033 per tonne compared with €1,030 per tonne on Thursday.
For the November–December–January (NDJ) window, offers eased to €1,036-1,045 per tonne from €1,041-1,050 per tonne on Thursday. Bids were made at €1,030-1,033 per tonne compared with €1,031-1,032 per tonne on Thursday.
Rapeseed oil trades were heard at €1,036 per tonne for September and at €1,036 per tonne, €1,040 per tonne and late at €1,034 per tonne for the NDJ window.
FOB sunflower oil prices across six EU ports rose across the curve on Friday.
September offers were made at $1,260 per tonne with bids at $1,230 per tonne, slightly lower than $1,265 per tonne and $1,235 per tonne respectively on Thursday.
For the October–November–December (OND) window, prices settled at $1,220 per tonne on the offer side and $1,190 per tonne on the bid side, compared with $1,220 and $1,200 per tonne on Thursday.
No Sunflower oil trades were reported to Fastmarkets on Friday.
The Black Sea sunflower oil market remained stable on Friday, although liquidity remained limited. While the Russian government has updated the sunflower oil and meal taxes for August on the agriculture ministry website, given the official document from July 24, during August the published taxes are suspended.
Russia-origin sunflower oil for August shipment was still looking relatively cheaper with offers at $1,198-1,200 per tonne CIF Mersin, with bids heard at $1,190 per tonne.
Ukrainian sunoil offers were heard placed above $1,200 per tonne CIF Mersin, thus were not attracting buyers attention.
The sunmeal market was silent, amid very limited activities, with no firm offers in the market, and not many buying ideas around.
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