Friday’s US rig count detailed a build in the number of operational US oil rigs despite almost continual decline in prices since early May, sending front month ICE gasoil into the $460s and pushing the September BOGO spread into the mid-$190s/t at the start of this morning’s session. Indicators on palm oil were mixed. MPOB’s monthly release as expected showed a strong build in Malaysian July production and accompanying rise in stocks MoM.
Crude palm output was up nearly 5% MoM at 1.01mn t, lifting crude stocks by a hefty 14% to 1.255mn t. Total palm oil stocks hit 2.265mn t, up 5% compared to June levels. Monthly palm oil exports meanwhile dipped more than 5%. Early August data however was far stronger, with exports surging nearly 60% in the first ten days of this month compared to the same period in July as overseas demand patterns get back into gear in the wake of the Ramadan trade slowdown.
Bean oil sentiment has also firmed in out of hours trading, with the front month contract moving firmly back above the 30¢/lb threshold.