Malaysia CPKO: Prices yet to reach ceiling as offers touch above RM 300/picul
Domestic CPKO offers in Malaysia continued to rise in the week ending Mar 15, tracking overall higher prices in the palm complex and related vegoils. Offers rose as high as RM301/picul, the highest seen since September 2022, with weekly average offers jumping by RM19 to reach RM292.40/picul. This was also the largest weekly change in average weekly offers since late-June 2022, where offers fell drastically by RM57.20/piculin the week ending June 24 to RM295.80/picul. Tightened supply and steady de-mand continue to underpin support for CPKO prices, with offers starting the week higher compared to the week before and rising steadily as it tracked movement in CPO prices. For the first 15 days of March, Malaysian CPKO exports were pegged at 12,740 mt up from 3,190 mt a month ago, accord-ing to estimates from cargo surveyor Intertek Testing Services. More than two-thirds of the exports were shipped to the Netherlands, with the remained to India and Kenya. Processed PKO meanwhile were at 14,240 mt, also up from the 9,670 mt shipped on the first half of February. (1 metric ton = 16.5346 picul).
CPKO cif Rotterdam: Offers rise by similar levels as previous week while trading pace slows
CPKO offers to Rotterdam rose at a similar rate compared to the previous week, though offers for Mar-Ap delivery surged by $95/mt to $1,215/mt, exceeding the $1,200/mt level for the first time since Sept-2022. Offers for remaining forward delivery months ranged $1,180-1,195/mt, with two trades done at $1,180/mt for May-Jun and Jun-Jul delivery, $125 more than the levels traded a week ago. Buyers are having to contend with the higher prices following tightened supply amid the lower seasonal production period, combined with higher freight costs with ongoing Houthi-driven tensions at the Red Sea. The offer levels are slightly higher relative to a year ago, with the difference potentially due to the increased freight and improved demand as buyers seek to restock after drawing down the higher stock levels in the second half of last year. Meanwhile the spread between CPKO and CCNO for spot-month delivery narrowed to $120/mt, $27 less compared a week ago. The spread could poten-tially tighten further as CCNO supply also starts to tighten amid seasonal lower production alongside CPKO. CPKO also remains at a premium to CPO, with the spread widening slightly from $71/mt in the previous week to $77/mt. For the first half of March, Malaysia exported 9,440 mt of CPKO to the EU.
CCNO: Escalating offers finding new support level
Offer prices continued to accelerate for the fourth successive week adding a large $55-75 finding support at above $1300/mt across the delivery months. There was little offer price differential between the nearby to back months. Overall CCNO weekly average moved up $55 to $1280/mt, rising higher for 10 weeks straight. Spot month offers ranged $1250/mt at the start of the week to a high of $1300/mt on Fri close. The last time offers were $1300/mt was in Aug 2022. However, there were no deals heard despite the upward offer prices. The last deal heard was in week 26 Feb, where one deal was concluded at $1295/mt. In the origin market, the Philippines FOB weekly average powered higher for the fourth week in a row locking in a $52 rise to $1100/mt—the highest in a year. Meanwhile, Philippines FOB weekly average advanced by $40, rising for the fifth week straight settling at $1140/mt. The Philippines coconut oil export from Jan to 9 Mar 2024 was at 195,300 mt or down 35% compared to Jan-Mar of last year which was at a high of 300,311 mt, according to UCAP or United Coconut Associations of the Philippines.
Source: POA