Malaysia palm oil future ended with losses in the first session. Overnight losses in CBOT soy oil prices and strength in Malaysian ringgit has corrected the prices after three straight sessions of gains. Strong ringgit makes palm oil more expensive for importers, while Malaysia market closed yesterday on a public holiday.
The market is waiting for the latest update from SGS and Amspec export & production data from SPOMMA for 25th days of August. Palm oil export data for 1-20th Aug’18 down by 9% & 11% from Jun’s 20 days. Sluggish palm oil export demand and high palm oil stocks in origins (Indonesia & Malaysia) and strong ringgit overall limiting any fains the palm oil prices.
Malaysia palm oil inventory for Aug’18 is expected to increase around 2.35-2.38 MMT from 2.21 MMT in the previous month on better production number this month. In front of Indonesia, Govt is looking for new palm oil markets demand due to various problems in the traditional markets, such as negative campaigns against the commodity and the impact of the ongoing trade war. In this context, Indonesia biodiesel consumption may rise from 5.5 million to 6 million kiloliters in 2019, from 3.78 million kilolitres this year.