Palm oil prices have fallen to a three-week low

TraderKnows
TraderKnows
09-13

Palm oil prices have fallen to a three-week low due to rumors of Indian tariffs and inventory pressure. The global fats and oils market's weakness and increased volatility in crude oil prices have exacerbated the downward pressure on prices.

On Thursday, palm oil prices hit a three-week low again, as global market uncertainties added further pressure. Rumors of tariff adjustments in India, along with a weak global vegetable oil market, were the main drivers of this price decline. Malaysia's benchmark palm oil contract fell by 1.36%, closing at 3,848 ringgit per ton, the lowest price in three weeks.

As the world's largest palm oil importer, India's actions significantly influence market sentiment. Recently, there has been widespread speculation that India might raise import tariffs on all edible oils to protect local oilseed farmers, causing investors to adopt a wait-and-see attitude. At the same time, falling prices of soybean oil and other vegetable oils in global markets have also intensified the pressure on palm oil prices.

Inventory issues have also posed additional challenges to the palm oil market. In August, Malaysia's palm oil inventory surged to a six-month high, with production hitting a nine-year record, while exports experienced a slowdown. Under dual pressures, market sentiment turned cautious as investors feared the oversupply could further depress palm oil prices.

Moreover, fluctuations in crude oil prices have also impacted the palm oil market. As a key component of biofuel, palm oil is closely linked to crude oil prices; thus, a drop in crude oil prices also dampens the demand for palm oil. Analysts indicate that with global market fluctuations in crude oil demand, palm oil prices might see new changes by the end of the year.

Despite numerous short-term adverse factors facing the palm oil market, policy changes in India and Indonesia could still provide some support. The market anticipates that Indonesia might lower palm oil export taxes to boost international competitiveness. This potential policy change is expected to offer opportunities for palm oil prices to rebound, and investors should stay closely tuned.

商务 英语

商务合作 Telegram Eng

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Options On Futures

Options on futures refer to financial derivatives that combine the characteristics of futures contracts and options contracts. They are based on the underlying assets of futures contracts (such as commodities, indices, exchange rates, etc.) and involve future delivery and the choice of rights.

Organization

You Missed

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact