A quiet month for Malaysia palm oil prices after an early June fall
1 RM (Malaysian Ringgit) = 0.21 USD
1 USD = 0.79 GBP
*Note, exchange rates are for May 17 2024
Malaysia’s Crude Palm Oil settlement price dropped 4.1% in the first two days of June 2024, but since then the drop has been arrested with trading in a relatively small band. The price began June at RM4,074/tonne (US$855) and was RM170/tonne (US$36) lower by the 5th June. It has since strengthened 2.0% to RM3 983/tonne (US$836).
The 17th May price was 6.4% higher than the year before, but 43.9% lower than the all-time high in April 2022.
Analysis: Processor MP Evans reports greater palm oil output and efficiencies
Oil processor MP Evans has said that it processed 8% more crop in the first five months of 2024 compared to the same period last year. Greater efficiency meant a 10% increase in the volume of oil extracted. The company largely operates in Indonesia.
In the five months, 631,400 tonnes of fresh palm fruit bunches were processed by the company, compared to 584,400 tonnes in the January to May period last year. Oil volumes were up from 134,400 tonnes to 147,500 tonnes, with a 0.4% increase in the oil extraction rate.
The average crude palm oil price achieved in the period was US$997, down only US$4/tonne on last year. Palm oil kernel prices rose US$10/tonne to US$425.
Malaysian oil prices were given a little support in the middle of June by higher soyoil prices. Larger soy harvest in South America mean that China is stocking up on the commodity, giving support to prices of all vegetable oils.
There are fears over the Indian palm oil harvest after a heatwave in the country and the delay of monsoon rains.
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.