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VEGOILS-Palm logs record closing, best month in 13 years after Indonesia export ban

reuters.com · 04/29/2022 07:21
VEGOILS-Palm logs record closing, best month in 13 years after Indonesia export ban

Palm logs biggest weekly rise since May 7, 2021

Soyoil futures hit record high overnight

CPO price spread between Malaysia, Indonesia to widen

Updates with closing prices

By Mei Mei Chu

- Malaysia palm futures notched a closing record high on Friday, after marking their biggest monthly jump in nearly 13 years as an export ban by top producer Indonesia fanned concerns about tightening supplies and pushed global edible oil prices higher.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange climbed 191 ringgit, or 2.76%, to 7,105 ringgit ($1,632.58) a tonne.

The contract logged a monthly rise of 24.5%, its best month since April, 2009. For the week, the contract gained 11.5%, its biggest percentage gain in a year, spurred by supply worries.

Indonesia should be able to tackle its cooking oil shortage in the next few weeks and lift an export ban on palm oil and its refined products in May, an industry body said on Thursday, a day after a last-minute policy U-turn sparked more alarm for markets. nL2N2WQ04P

Crude palm oil prices in Indonesia are likely to fall sharply as the domestic market will be unable to absorb the increased supply, straining the country's storage infrastructure while prices in other markets such as Malaysia rise, Fitch said.

"Indonesia's crude palm oil export ban is likely to widen the spread between Malaysian and Indonesian prices," Fitch Ratings said in a note.

The ban has trapped at least 290,000 tonnes of the edible oil meant to be headed to India at ports and oil mills in the world's top producer, four industry officials told Reuters on Thursday. nL2N2WQ0NE

In related oils, Dalian's most-active soyoil contract DBYcv1 rose 1.3%, while its palm oil contract DCPcv1 gained 3.8%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.7% after scaling record highs overnight.

As a shortage of sunflower oil ripples through the global food industry, Unilever said on Thursday that it has altered some of its recipes so it can substitute rapeseed oil instead. nL3N2WQ4CY

The Malaysian bourse will be closed until May 5 for Eid al-Fitr.



($1 = 4.3520 ringgit)



(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu, Shounak Dasgupta and Amy Caren Daniel)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E