Palm oil falls 2% on lower-than-expected exports amid India-Malaysia tensions

[Minho]

Palm oil falls 2% on lower-than-expected exports amid India-Malaysia tensions

Reuters•January 15, 2020

Workers collect palm oil fruit at a plantation in Chisec
KUALA LUMPUR (Reuters) - Malaysian palm oil futures fell for the third straight session on Wednesday on lower-than-expected exports and tracking losses in rival edible oils, while the market worried about diplomatic tensions between Malaysia and India.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed down 60 ringgit, or 2%, at 2,945 ringgit ($722.88).

Malaysian palm oil exports for Jan. 1-15 rose between 3% and 5.8%, cargo surveyors Amspec Malaysia and Intertek Testing Services said on Wednesday, but it was lower than had been expected.

On Tuesday, the contract slumped 2.8%, the biggest fall in eight months, after Malaysia's prime minister defended his criticism of India's religion-based citizenship law and its actions in Kashmir, even as New Delhi halted palm oil imports from the world's second-largest producer.

India, the world's biggest buyer of edible oils, last week restricted imports of refined palm oil and informally instructed traders to stay away from Malaysian palm oil.

The move has effectively stopped all purchases from top supplier Malaysia, industry and government sources told Reuters.

"Palm oil is down on the absence of Indian buying and reports of a washout on refined palm oil volume sold to India," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.

Supporting prices are forecasts of lower January production and tighter supplies in the first half of 2020 due to dry weather and lower fertiliser usage early last year.

Dalian's most-active soyoil contract fell 1.7%, while its palm oil contract dipped 1.8%. CBOT soyoil prices were down 0.8%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.



(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu and Nick Macfie)

 

[Bilal9]

I think we in Bangladesh should help uncle Mahathir by buying palm oil from Malaysia as a substitute for India $hit edible oil products. So should other Muslim countries. These Sanghis are asking for a fight.

Eat $hit Sanghis.

And who wrote this friggin anti-Malay article? Two ingrate Malay-Chinese and another Ingrate anti-Malay Indian. 2% drop is nothing.

Malay and Indonesian brothers, see the colors of these people. Treacherous Fifth columnists!!

@UKBengali bhai look at this...

 

[Minho]

I think we should help uncle Mahathir by buying palm oil from Malaysia as a substitute for India $hit edible oil products. So should other Muslim countries. These Sanghis are asking for a fight.

Eat $hit Sanghis.

And who wrote this friggin anti-Malay article? Two ingrate Malay-Chinese and another Ingrate anti-Malay Indian. 2% drop is nothing.

Malay and Indonesian brothers, see the colors of these people. Treacherous Fifth columnists!!

And who would buy that extra palm oil? Is demand for palm oil suddenly skyrocketing in bangladesh?

 

[Bilal9]

And who would buy that extra palm oil? Is demand for palm oil suddenly skyrocketing in bangladesh?

Who do you think buys all of Indian food products? Onion, Dhaal, everything....

In India, standard lunch is one skinny roti with a bite of onion...we don't have these habits...

Bangladesh is major consumer of Indian food products. There are locally established producers of Indian FMCG goods, the volume is so high.

 

[Minho]

Who do you think buys all of Indian food products? Onion, Dhaal, everything....

In India, standard lunch is one skinny roti with a bite of onion...we don't have these habits...

Bangladesh is major consumer of Indian food products. There are locally established producers of Indian FMCG goods, the volume is so high.

Bangladesh is only the fifth largest importer of Indian agricultural exports
https://www.fas.usda.gov/data/india-s-agricultural-exports-climb-record-high

And obviously, the reason Bangladesh imports so much food products from India is because India produces them the cheapest.

 

[Bilal9]

Bangladesh is only the fifth largest importer of Indian agricultural exports
https://www.fas.usda.gov/data/india-s-agricultural-exports-climb-record-high

And obviously, the reason Bangladesh imports so much food products from India is because India produces them the cheapest.

So yeah we can import to make up for a 20% drop in Malaysian Palm Oil exports to India, not just 2%...

 

[Beast]

So yeah we can import to make up for a 20% drop in Malaysian Palm Oil exports to India, not just 2%...

It not just Indian. EU ,one of the major buyers of palm oil has cut down number of import due to environment concern. Palm oil price has taken a beating.. Bangladesh has no way to save Malaysia unless it has trillion of money.

 

[Bilal9]

It not just Indian. EU ,one of the major buyers of palm oil has cut down number of import due to environment concern. Palm oil price has taken a beating.. Bangladesh has no way to save Malaysia unless it has trillion of money.

Well there are other Muslim countries too, like Pakistan, Turkey, the whole Middle East. Time that all these countries acted like a single global market and flexed their collective buying power.

https://news.yahoo.com/bangladesh-open-increasing-palm-oil-071452973.html

Here are the top 15 countries that spent the most on imported palm oil during 2018.

1. India: US$5.5 billion (17.5% of total palm oil imports)
2. China: $3.4 billion (10.8%)
3. Pakistan: $1.9 billion (6.1%)
4. Netherlands: $1.8 billion (5.7%)
5. Spain: $1.3 billion (4.2%)
6. United States: $1.1 billion (3.6%)
7. Bangladesh: $1 billion (3.3%)
8. Italy: $997 million (3.2%)
9. Russia: $748.4 million (2.4%)
10. Egypt: $686.2 million (2.2%)
11. Germany: $583.7 million (1.9%)
12. Myanmar (Burma): $575.8 million (1.8%)
13. Japan: $536.4 million (1.7%)
14. Vietnam: $513.4 million (1.6%)
15. Malaysia: $452.8 million (1.4%)

 

[AZADPAKISTAN2009]

Pakistan will likely buy the extra supply , we need nutritional palm oil will help bring local prices down

Palm oil is considered healthier vs Corn oil , as such it would benefit by introduction in Pakistan

 

[Indos]

It not just Indian. EU ,one of the major buyers of palm oil has cut down number of import due to environment concern. Palm oil price has taken a beating.. Bangladesh has no way to save Malaysia unless it has trillion of money.

Palm oil prices to climb 17.9% in 2020 on tight supplies, biodiesel programs: Reuters poll

Mei Mei Chu
4 MIN READ


KUALA LUMPUR (Reuters) - Average palm oil prices will surge 17.9% this year, a Reuters poll of industry participants showed, as reduced output in the first half of the year and higher biodiesel consumption in top producers Indonesia and Malaysia tighten the market.

Benchmark palm oil prices will average 2,650 ringgit ($650.80) a ton in 2020, up from 2,248 ringgit last year, according to the median estimate from a poll of 18 analysts and industry players.

“With relatively low production in the first quarter, production will only be sufficient for export and not for topping up stock,” said Derom Bangun, chairman of the Indonesia Palm Oil Board.

Supplies are expected to rebound later in the year, however, and prices could be “much lower from April to December”, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil importer based in Mumbai.

(GRAPHIC: 2020 Reuters palm oil poll - here)


Indonesia’s palm production is pegged to rise 0.55% to 45.75 million tonnes in 2020 from an estimated 45.5 million tonnes in 2019, according to the median estimate of 14 poll respondents who answered questions specifically on Indonesia’s palm sector.

This is compared to output growth of 5.8% in 2019 over 2018’s total of 43 million tonnes, sources said.

Output in No.2 producer Malaysia will grow by 0.35% to 19.93 million tonnes this year, based on the median estimate from 14 participants.

(GRAPHIC: Historical palm oil price averages - here)


In 2019, Malaysia’s production rose 1.85% to 19.86 million tonnes, up from 2018’s 19.5 million tonnes.

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The slower output growth is due to dry weather and lower fertilizer usage in both countries last year, when palm prices dropped as low as 1,960 ringgit.

Indonesia and Malaysia together account for nearly 90 percent of global palm production.

BIODIESEL
“(In) year 2020 much depends on whether Indonesia can produce 10 million kilolitres of biodiesel,” said Christopher Chai, a general manager with Malaysia’s Kwantas Corp.

The market will be closely watching the roll-out of Indonesia’s B30 biodiesel program - biodiesel with 30% palm content - and Malaysia’s newly implemented B20 program, as together they are expected to increase local consumption by 10%-13%, traders said.

Indonesia is targeting 10 million kilolitres (8.7 million tonnes) of biodiesel production this year, while Malaysia’s biodiesel association is expecting to produce 1.7 million to 2 million tonnes of the fuel.

TRADE WARS
Ongoing trade disputes between China and the United States, India and Malaysia, and the European Union and Indonesia will likely affect export shipments this year, poll respondents said.

“The Indonesian government’s battle with the EU on the latter imposing anti-dumping duties on Indonesian biodiesel exporters will hog the media attention,” Sathia Varqa, owner and co-founder of Singapore-based Palm Oil Analytics, said.

 

[Turingsage]

So yeah we can import to make up for a 20% drop in Malaysian Palm Oil exports to India, not just 2%...

Here are the import figures. DO IT. DO IT NOW. DONT TALK ABOUT IT ENDLESSLY. JUST DO IT. REPLACE INDIA FROM THAT LIST. These feeble minded infantile keyboard warriors whose IQ's can be measured by the fingers of a single hand, who would piss their pants buying a decent meal talk like masters of the universe in front of a computer keyboard, the world to do as they dream. Utter Cretins

https://www.indexmundi.com/agriculture/?commodity=palm-oil&graph=imports

 

[AZADPAKISTAN2009]

India will just have to order Diesal for their cooking

 

[BringHarmony]

Well there are other Muslim countries too, like Pakistan, Turkey, the whole Middle East. Time that all these countries acted like a single global market and flexed their collective buying power.

You want rich Arabs to consume the same palm oil as poor folks do? How dare you? LOL!

 

[Bilal9]

Here are the import figures. DO IT. DO IT NOW. DONT TALK ABOUT IT ENDLESSLY. JUST DO IT. REPLACE INDIA FROM THAT LIST. These feeble minded infantile keyboard warriors whose IQ's can be measured by the fingers of a single hand, who would piss their pants buying a decent meal talk like masters of the universe in front of a computer keyboard, the world to do as they dream. Utter Cretins

https://www.indexmundi.com/agriculture/?commodity=palm-oil&graph=imports

We got our feathers ruffled a bit?

Well name-calling aside, one cannot support Sanghis on principle.

If you say we Bangladeshis and Pakistanis should also boycott Malaysian Palm oil because Indian Sanghi bigots did, then where is the world headed? An eye for an eye? You cannot support economic bigotry of this type.

BTW - that IndexMundi chart is the biggest BS I have ever seen.

Yes, Uncle Mahathir is my hero - always will be. Speaking the truth like he always does.

@Indos this is great. We should convert all our cars to run on biodiesel. I don't know if this is cheaper than 95 Octane Petroleum...

Furthermore, Malaysians should seriously consider treating their local Indian Hindu population like what India is doing for the Indian Muslims. Tit for tat...

India will just have to order Diesal for their cooking

 

[Protest_again]

We got our feathers ruffled a bit?

Well name-calling aside, one cannot support Sanghis on principle.

If you say we Bangladeshis and Pakistanis should also boycott Malaysian Palm oil because Indian Sanghi bigots did, then where is the world headed? An eye for an eye? You cannot support economic bigotry of this type.

BTW - that IndexMundi chart is the biggest BS I have ever seen.

Yes, Uncle Mahathir is my hero - always will be. Speaking the truth like he always does.

@Indos this is great. We should convert all our cars to run on biodiesel. I don't know if this is cheaper than 95 Octane Petroleum...

Furthermore, Malaysians should seriously consider treating their local Indian Hindu population like what India is doing for the Indian Muslims. Tit for tat...

Lol. If they treated Hindus the same way we treat Indian muslims, then Hindus are in for good days. We do not have affirmative action for majority. Malay muslims get so much more benefits than other minorities that it is ridiculous. They demand reservation because they couldn't compete with minority (be it Chinese/Indian) fair and square. Same is the case with every muslim majority country. They hoarde power and sit in their comfy seats poking their nose where it doesn't belong. And Mahathir is a goner come next elections.