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In Asia, crude palm oil (CPO) futures traded in both directions before closing mixed with market participants awaiting fresh directional cues and overall activity also slower.
The most liquid CPO futures contract for September on the Bursa Malaysia Derivatives Exchange closed 2 ringgit per tonne higher at 4,102 ringgit ($966) per tonne, reversing morning losses when it closed 4 ringgit per tonne lower from the previous day’s settlement at 4,096 ringgit per tonne at the end of the morning session.
Front-month contracts for July and August edged lower while forward-month contracts rose by 2-22 ringgit per tonne at the close of the day.
Total traded volume was also lower than average at 42,836 lots versus the more typical daily average of 70,000 lots.
CPO futures also received support from higher Chinese vegoil futures, with the most active September palm olein futures contract on the Dalian Commodity Exchange rising by 0.45% to close at 8,538 yuan ($1,188) per tonne, while the equivalent soybean oil contract rose by 1.44% to close at 8,152 yuan per tonne.
The September rapeseed oil futures contract on the Zhengzhou Commodity Exchange also rose by 0.25% to close at 9,691 yuan per tonne.
Soyoil futures trading on the CME – a key driver in CPO futures movement in recent days – was also absent during Asian hours with the exchange closed for a US holiday, while crude oil prices were higher amid uncertainty over the outlook for the Israel-Iran conflict.
The Malaysian ringgit also eased slightly against the US dollar compared with Wednesday, making tropical oil relatively less expensive to holders of the US dollar, and thereby stoking buying interest.
Preliminary estimates for Malaysia’s June 1-20 palm oil exports were reported at 11.6%, 86,035 tonnes, higher than the previous month at 827,595 tonnes, according to cargo surveyor Intertek Testing Services, with finalized figures expected on June 20.
In the cash market, CPO was washed out $1,060-1,065 per tonne CFR India for July-September shipment earlier in the day, with the volume estimated at 5,000-6,000 tonnes. Discussions were relatively muted on Thursday, with limited buying ideas heard, while offers were around $1,065 per tonne CFR west coast India for July cargoes and $1,075 per tonne CFR WCI for August-September cargoes.
Import margins were considered unattractive at current offer levels, while buyers remained unhurried to pick up more cargoes, even with CPO currently the cheapest edible oil into India following the surge in soybean oil prices.
At origin markets, CPO discussions were heard at $1,025-1,040 per tonne FOB Indonesia for July shipment, while olein discussions were heard at $975-995 per tonne FOB for the same month.
In Europe, FOB Rotterdam rapeseed oil prices continued to strengthen on Thursday, with trading slightly quieter amid holidays in the US and Brazil.
For July loading, rapeseed oil offers strengthened to €1,115 per tonne from €1,110 per tonne on Thursday, while bids edged upward to €1,085 per tonne from €1,080 per tonne, indicating continued strength in demand.
In the August-September-October (ASO) period, offers were stronger at €1,045-1,052 per tonne, while bids rose over the day to €1,045 per tonne from €1,030 per tonne.
Forward values for November-December-January (NDJ) also increased. Offers bounced to €1,045-1,052 per tonne, while bids strengthened to €1,030-1,042 per tonne, narrowing the spread to ASO.
Sunflower oil market indications on Wednesday weakened in the forward months, but October-November-December (OND) prices gained, narrowing the backwardation in the market.
For the July-August-September (JAS) period, sunflower oil offers decreased to $1,215 per tonne FOB from $1,220 per tonne the previous day. Bids fell to $1,195 per tonne from Wednesday’s $1,205 per tonne.
The OND period saw offers emerge at $1,155 per tonne, while bids were made at $1,125 per tonne.
No European sunflower oil trades were reported to Fastmarkets on Thursday, while Ukraine-origin sunflower oil in the Black Sea was offered at $1,190 per tonne CIF Mersin for July shipment, which corresponds to Wednesday’s level, while July bids were heard around $1,160 per tonne.
Meanwhile, Russia-origin sunflower oil was reported offered at $1,180 per tonne CIF.
Overall, the market remained quiet, with most participants adopting a wait-and-see approach amid subdued liquidity.
Finally, spot buyers in Ukrainian ports continued to show ideas around $1,090 per tonne CPT deep-water ports, but sellers largely preferred to hold back and monitor market developments rather than commit to active sales.
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