Palm taking long term advantage from soya spread

Currently  Palm Taking Advantage From Soya As we can consider market overrun from our past expectations due to many external news. But now it’s neutral to bullish side for rest of 2022.

Market take a U turn and attention going to convert with Bio Palm mandate form all side, conference going on in Indonesia and Govt try to accelerate the stocks in biofuel and going to implement B40, bad weather in both countries may hurt the little bit production numbers which is I think manageable.

Palm B40 implemention in Indonesia will help and build strong domestic foundation and stable the market while Soya price too much drop in 2nd half. From soybean Russia ans Ukraine and Russia conflict on grain export push the market on higher side.

While Brazil political issue also in this regards meanwhile all these the S&D like the production and export out of Indonesia is now not a major factor, end stock in Indonesia is near to 5MMT which is i think now manageable.

The price of palm oil is going to hold and might be see above 4600-4700RM.from Malaysia side Oct little bit crazy and I think supply crunch will again push the prices higher side.

Dry weather in Argentina is concern and low margin of crushing more pumping the soya oil prices in coming days.

Author:  Abdul Hameed

Tags: Market, palm, B40, соя, price, palm oil