Palm Oil Trend

Macro and Industry News

According to data from the Southern Peninsula Palm Oil Press Association (SPPOMA), Malaysia's palm oil production

 increased by 4.34% from November 1 to 10, 2023, with a 0.26% decrease in oil yield and a 2.90% increase in 

production.

According to foreign media reports, the German oilseed industry association UFOP predicted on Tuesday that the winter rapeseed planting area harvested in Germany in 2024 is expected to decrease by 4% -7%, to

 1.09-1.13 million hectares.

Trend intensity

Palm oil trend intensity: 1 Soybean oil trend intensity: 0

Note: The range of trend intensity values is an integer within the range of [-2,2]. The classification of strength is as 

follows: weak, slightly weak, neutral, slightly strong, strong, -2 represents the most bearish, and 2 represents the 

most bullish.

Opinions and suggestions

Palm oil: Malaysia's palm oil storage capacity at the end of October was 2.45 million tons, lower than market 

expectations. With the end of the high production period of palm oil from the producing area, the market expects

 that the accumulated pressure of Malaysian palm oil will be alleviated. Short term bearish sentiment has led to a

short-term strengthening of Malaysian palm oil. Technically, there is a possibility of a hit of RM3950-4000 per ton.

 However, the current palm oil inventory in Malaysia is still at a historically high level during the same period, and 

Malaysia is expected to maintain competitive pricing in order to digest inventory pressure. In addition, the recent

 weak trend of crude oil prices has also had a negative impact on palm oil. So overall, palm oil may strengthen in the

 short term, but the increase is expected to be limited. Domestic palm oil inventories are expected to remain high, 

with attention to changes in import profits and domestic ship purchases.