Vegoils commentary
CPO surges on bullish supply and demand forecasts

Crude palm oil (CPO) futures rose for the second consecutive day, amidst bullish outlooks from major analysts at the Bursa Malaysia Palm conference in Kuala Lumpur.
The third-month CPO futures contract for May delivery on Bursa Malaysia soared 95 points or 2.3% to MYR4,081/mt ($862.43/mt) to notch its highest close since July 2023.
A weaker ringgit against the USD also encouraged buying, with palm seen as more attractive to buyers holding the US dollar.
Chinese vegoils also ended higher, with the most active palm oil contract on the Dalian Commodity Exchange up 2.1% or a 164-point jump to close at CNY7,662/mt while the equivalent soybean oil contract surged by 100 points or 1.2% to CNY7,508/mt. 
The most active rapeseed oil contract on the Zhengzhou Commodity Exchange hiked 157 points or 1.9% to CNY8,001/mt.
In the physical market, offers to China were limited, while olein offers to India were at $945/mt CNF for March and $930/mt CNF for April earlier in the day.
CPO offers to India were also heard around $980/mt CNF for March, $970/mt for April CNF and $960/mt for May.
On a FOB basis, olein offers out of Indonesia for the second half of March were at $912.50/mt and CPO offers for April on the same basis were at $940/mt.
Market participants will also be considering supply and demand estimates for February ahead of the official data release from the Malaysia Palm Oil Board (MPOB) on March 11, with production estimates from the Malaysian Palm Oil Association (MPOA) forthcoming. 
Meanwhile, estimates from the Southern Peninsular Palm Oil Millers’ Association (SPPOMA) have output for the first five days of March pegged 2.3% lower compared with a month ago. 
In the Americas, soyoil futures jumped higher Wednesday more than offsetting Tuesday’s losses with underlying support from stronger crude and palm oil prices while soymeal futures held broadly unchanged.
The May CME soyoil contract rose 0.9% on the day to 45.46 c/lb at the time of publication.
The increase in WTI and Brent crude oil prices by 1.4-1.6% and the surge in Malaysian palm oil futures to a seven-month high were the main factors supporting the market.
May CME soymeal contracts were broadly unchanged on the day, trading at $330.3/st at the time of publication.
Soymeal borrowed weakness from plunging global wheat prices and product spreading dynamics and fell as much as 1.6% during the session.
Soymeal prices, however, recovered said losses later in the day on technical factors amid an outlook marked by large net short positions kicking in.
In the physical market, soyoil premiums in Argentina firmed on Wednesday, with the April basis seen at a 6.45 c/lb discount under May futures, up 0.15 c/lb on the day.
The same basis in Brazil was assessed at a 6.5 c/lb discount to May futures, stable in comparison with Tuesday.
Soymeal basis, meanwhile, rose on the day in South America, amid firmer export demand.
In Brazil, the soymeal premium for April loading gained $0.5/st, assessed at $16.5/st over underlying futures.
The same basis in Argentina was assessed at a $12/st premium to May futures, up $2/st compared with the previous day.
The European sunflower and rapeseed oil market was mostly higher on Wednesday, boosted by the global trend that was the driving force for vegetable oils
Offers for rapeseed oil for delivery in May/June/July strengthened by an average €10-12/mt per day to €875/mt against €869/mt FOB Rotterdam.
In addition, several rapeseed oil trades were heard during the day, FOB Rotterdam: April €888/mt, May/June/July – €870/mt and €872/mt and August/September/October – €870/mt.
Sunflower oil in six European ports jumped $17.5/mt on the day, to offer levels of $937.5/mt FOB versus buyers’ idea of $927.5/mt FOB for shipment in April/May/June.
The trade level was heard at $950/mt for July/August/September delivery, which is $10/mt higher than yesterday’s trade for the same period.
The sunflower oil market in the Black Sea region maintained yesterday’s levels without significant adjustments on limited nearby demand due to a well bought Turkish market. 
Offer levels were seen at $845/mt CIF Mersin, against buyers’ ideas at $835/mt CIF Mersin, while trade levels were heard at $840/mt CIF Mersin for March-April delivery.
Spot buyers at the ports, in turn, increased their purchasing prices by an average of $5/mt per day and showed prices from $750 CPT/mt Deep-water ports.