March 22, 2023 (MLN): Palm oil prices have taken a hit due to soybean oil's overnight losses on the Chicago Board of Trade.
Sathia Varqa, the co-founder of Singapore-based Palm Oil Analytics, has stated that the current price drop is also seen in soybean oil and palm olein on the Dalian Commodity Exchange.
This latest price turbulence is also being attributed to the recent renewal of the Black Sea Grain Initiative, the Russia-China summit, and uncertainty around the Fed's upcoming rate decision. These factors have contributed to volatility in financial markets, including the commodity asset class.
As a result, the benchmark Bursa Malaysia Derivatives contract for June delivery has dropped by MYR105 to MYR3,679 a ton.
This decrease marks a significant hit to the palm oil industry, which is a vital commodity in the global market.
The current market trends are causing concern for many in the industry, as they struggle to navigate the rapidly changing landscape.
With further uncertainty on the horizon, it is yet to be seen how palm oil prices will be affected in the coming weeks and months.
