Malaysia CPKO: Offers remain higher for eighth straight week
Local CPKO offers in Malaysia rose for a further eighth straight week, well supported by tightened supply and healthy demand. Weekly average offers rose to 308 ringgit per picul, just shy of the high seen in early September 2022 as CPKO tracked higher CPO values both in the cash and futures mar-ket. Local offer levels also ignored the drop-off seen in CPO futures towards the end of the week, ending Friday with the highest level seen so far at 315 ringgit per picul. Local CPKO consumption for February was estimated at 147,681 tonnes, lower than January’s 188,054 tonnes, with March’s level expected to be moderately higher and combined with the better export de-mand, keeping CPKO prices well supported. Malaysian CPKO exports rose further in March with shipments for March 1-25 pegged at 21,740 tonnes, according to cargo surveyor ITS estimates, nearly triple the 8,690 tonnes shipped in the same period one month before. About half of the volume went to India at 10,990 tonnes versus zero the month before, and the remainder to the EU and the African continent. Processed PKO shipments were also higher at 24,720 tonnes versus the 19,630 tonnes shipped in February 1-25. (1 metric ton = 16.5346 picul).
CPKO cif Rotterdam: Trades active as offers see moderate rise
CPKO offers rose further in the week as it tracked overall strength in the wider palm complex, aided by firmer vegoil prices. Offer on Friday rose $20-47.50 per tonne on the week with offers for May-June delivery jumping the most to $1232.50 per tonne from $1,185 per tonne the previous week. Four trades were heard concluded for forward months at about similar levels seen in the previous week. Offer levels remain higher than that seen a year ago, but have yet to exceed the 2022 levels, when offers and trades exceed-ed $2,000 per tonne at the height of tight global supply, resulting from Covid-driven production issues and the Russia-Ukraine conflict which sent global palm prices to an all time high. Meanwhile, the spread between CPKO and CCNO for spot-month delivery narrowed for a third straight week to $109 per tonne from $120 per tonne the previous week. The narrower spread comes following a sharper rise in CPKO offers and is likely to remain above $100 as CCNO supply goes into a seasonal low. The spread against CPO on the other hand widened to $100 per tonne from $77 per tonne, as CPKO ignored the drop in CPO offers towards the end of the week. Malaysia exported 9,440 tonnes of CPKO to the EU during March 1-25, according to ITS data, with the entire volume headed to the Netherlands. This was more than double the amount shipped in the same period in February, with the volume then also headed to the Netherlands.
CCNO: Escalating offers finding new support level
Offer were higher for the fifth week in a row adding $15-25 across the board and finding firm support at $1320 per tonne. CCNO offers been a healthy rise since the start of this week despite very little to no trades heard concluded. CCNO offers been drawing strength from the robust trading on rival of CPKO product. CCNO and CPKO are the 2 main raw materials for the extraction of laurics acid widely used in the oleochemicals sector for the manufacturing of personal and home care products. CPKO offers were higher for five weeks straight but was equally sup-ported by active trading on nearly every week. CCNO weekly average spot offers climbed up for the 11th week in a row after locking in $36 to settle at $1316 per tonne. Meanwhile, in the Philippines FOB weekly average powered higher for the fourth week in a row locking in a $52 rise to $1100 per tonne—the highest in a year. Meanwhile, the Philippines FOB week-ly average snapped to decline $28 to weekly average of $1112 per tonne after escalating higher for five weeks. The Philip-pines coconut oil export from Jan to 16 Mar 2024 was at 212,100 per tonne or down 29 compared to Jan-Mar of last year according to the United Coconut Associations of the Philippines (UCAP).
Courtesy: POA