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Malaysian palm oil exports to US up 44%, overall down 6%

  • The latest Malaysian palm oil export data from Intertek shows that although the country has seen a month on month drop from June, the US and China have stepped in to increase their purchasing. Exports to China saw a 17.3% increase in shipments while the US jumped 44%. With the Malaysian ringgit near 17 year lows and the US dollar appreciating fast, it’s likely that buyers were taking advantage of a combination of weak prices and weak currency. Palm close trading on 31 July with the worst monthly performance since March, down 5%. The oil remains well below its average premium to soybean oil, which has been around 88 $/mt for the year to date. CBOT bean oil has lost 10% over the past month as the US and South America compete to export their soybeans.

 

  • Argentine soybean exports fell 42% WoW to 322,000mt last week, however, 2015 soybean exports so far are up 63% YoY. The export tax on Argentinian soybean and soybean oil is just over 30%, considerably higher than a 10.86% export tax on biodiesel, in order to encourage domestic consumption.

 

  • The Brazilian real has fallen around 5% for the week, and on Friday came close to a 12 year low of 3.35 against the dollar. This could be beneficial for Brazilian farmers, who price their crops in dollars but are paid in real. This has led to the price of soybeans in Paranagua rising 3.3% over the week, but only 1.1% in the port of Santos.

 

  • European rapeseed oil prices have come under pressure from the rest of the veg oil complex despite a bullish outlook for the oilseed this season. The EU’s crop is likely to fall 3MMT following the neonicotinoid ban and the recent dry weather. Hardest hit will be Germany and France, while the UK’s comparatively small crop will still be reduced by about 14%. FOB Dutch Mills rapeseed oil prices have fallen about 30 €/mt over July.

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