Palm oil futures began the week with modest gains, reflecting cautious investor positioning ahead of a key supply update from Malaysia. The benchmark April contract on the Bursa Malaysia Derivatives Exchange rose slightly, trading above 4,170 ringgit per tonne.
The market is anticipating new data from the Malaysian Palm Oil Board, expected to provide updated figures on stockpiles, output and export levels. These metrics will be critical for gauging future supply tightness and potential price direction, especially after signs that January exports may have increased. Preliminary data from cargo surveyors suggest a notable month-on-month improvement in outbound shipments, with India showing particularly strong buying activity after a subdued end to 2023.
Soyoil futures, particularly in Chicago and Dalian, have been firm, creating positive spillover effects for palm oil. Since the oils are partially substitutable, strength in one often supports pricing in the other, providing a relative floor in times of uncertainty.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
