Olein premium to stearin jumps to highest since end-November
RBD palm olein premium over stearin widened to the highest levels since the end of November rising to $20 per tonne from $10.50 per tonne a week ago. Both olein and stearin spot month offers moved higher on the week but movements throughout the week were volatile- tracking similar movements in CPO futures. Stearin settled at weekly aver-age of $965 per tonne while olein was at $985 per tonne. Meanwhile, export demand for stearin rose by 28% to 71,425 tonne from a month earlier for the first 25 days of Mar according to ITS data. The rise was driven by gains in shipment to the European continent, U.S,A and Turkey. Exports to Turkey rose by nearly sixfold compared with a month earlier. In tandem, stearin co-product RBD palm olein was up by 23% – following a near tenfold rise to India. Exports of upstream RBD palm oil product was higher by 33%. Overall Malaysian exports rose by 13.77% for the 1-25 Mar versus 1-25 Feb period, improving on the 1-20 Mar levels. Meanwhile, Indonesian stearin exports for Feb plunged 9.50% to 80,306 tonne, the lowest ever since Jan 2019 when the historical export began. Indonesia’s stearin export contracted to below 100,000 mt for the second succes-sive month after notching 88,734 tonne in Jan. Indonesia’s Feb stearin exports were also lower tracking the overall weak-ness in palm exports by 25.37% to below 2 million tonne for the first time in nine months.
Courtesy: POA