JAKARTA — The price of palm oil surged again for the sixth consecutive day on Wednesday, 10 March 2021, reaching the highest level during the last 13 years after the Malaysian Palm Oil Board (MPOB) issued a monthly report on February stock and demand.
The price of palm oil May Futures at Malaysia Derivatives Exchange kept rising for the last six days straight, with last trading session of Wednesday, 10 March 2021, increased by 1.53% or 60 ringgit to 3,975 ringgit ($963.64) per ton, which was the highest since March 2008.
During early trading, the palm oil price dropped by 1.7% on concerns caused by the Cargo Surveyor’s export report that Malaysian palm oil export during period of 01 March to 10 March 2021 dropped by 22% as compared to that during 01 – 10 February.
The drop of the export was due to higher prices of palm oil compared to the prices of other vegetable oils, causing importers to substitute to other cheaper vegetable oils.
But the price of palm oil was resurging after the Malaysian Palm Oil Board (MPOB) issued its monthly report on February stock and demand, which showed palm oil supply in February decreased by 1.8% to 1.3 million tons, while production dropped by 1.85% to 1.11 million tons.
Following is the breakdown of the monthly report from the MPOB:
- Stock of Crude Palm Oil (CPO) in February 2021 rose by 2.44% to 656,047 tons from 640,635 tons in January 2021.
- Total stock of palm oil in February 2021 decreased 1.8% to 1.3 million tons from 1.32 million tons in January.
- CPO production in February dropped 1.85% to 1.11 million tons from 1.13 million tons in January.
- PKO production in February dropped 1.94% to 271,623 tons from 277,001 tons in January.
- Palm oil exports in February decreased 5.49% to 895,556 tons from 947,539 tons in January.
Malaysia is negotiating with Saudi Arabia to increase its palm oil export to Saudi Arabia up to 500,000 tons.
The price of soybean oil at Dalian Exchange decreased 0.7%, while the price of palm oil rose by 0.3%, reaching the eight year high on Monday. The price of soybean oil at Chicago Board of Trade rose by 0.2%.
Transaction volume on Wednesday, 10 March, increased to 72,284 lots from 64,155 lots on Tuesday, while at open position was up to 263,274 contracts from 252,486 contracts.
The price of CPO at the physical market in March rose 30 ringgit to 4,100 ringgit per ton.
Technical analysis for palm oil with first support level at 3,830 ringgit and the next at 3,810 ringgit, while first resistance level at 3,950 ringgit and the next at 4,010 ringgit. (*)