Market sentiment improvement and declining inventories drive palm oil futures prices higher
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⑴ Malaysian palm oil futures rose about 1% on Monday, approaching 4,600 ringgit per ton, rebounding from previous weakness. The weakening ringgit and stronger Chicago soybean oil futures provided support.
⑵ Global crude oil prices rose after the breakdown of US-Iran negotiations, also boosting market sentiment and increasing risk appetite.
⑶ According to monthly data from the Malaysian Palm Oil Board, March inventories fell for the third consecutive month, hitting a seven-month low, further strengthening fundamentals.
⑷ In India, the largest buyer, after March imports fell 19% from the previous month to a three-month low, the market expects buyers to replenish inventories ahead of seasonal demand.
⑸ However, weaker export estimates limited the gains, as shipping survey agencies reported palm oil shipments in the first ten days of April fell by 30.7%-38.9% compared to the same period in March.
⑵ Global crude oil prices rose after the breakdown of US-Iran negotiations, also boosting market sentiment and increasing risk appetite.
⑶ According to monthly data from the Malaysian Palm Oil Board, March inventories fell for the third consecutive month, hitting a seven-month low, further strengthening fundamentals.
⑷ In India, the largest buyer, after March imports fell 19% from the previous month to a three-month low, the market expects buyers to replenish inventories ahead of seasonal demand.
⑸ However, weaker export estimates limited the gains, as shipping survey agencies reported palm oil shipments in the first ten days of April fell by 30.7%-38.9% compared to the same period in March.
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