Malaysia CPKO: Offers see marginal rebound tracking CPO
Domestic CPKO offers in Malaysia inched up marginally in the week ending May 10, tracking a similar movement in cash CPO prices. Weekly average offers rose by 1.60 ringgit to 294.80 per picul, with levels ranging between 292-298 ringgit per picul, peaking at midweek before softening slightly at the close of the week. Compared to CPO, however, CPKO prices were better supported amid steady demand and lower stocks. Malaysia’s CPKO production in April slipped by 7.43% from March to 154,134 tonnes according to data from the Malaysian Palm Oil Board (MPOB) released May 10, while exports rose sharply to 33,527 tonnes from March’s 14,402 tonnes. Meanwhile CPKO stocks fell by 3.35% to 200,758 tonnes, with PPKO stocks 1.7% higher to 146,276 tonnes, bringing estimated local disappearance for palm kernel oil (CPKO+PPKO) to 91,146 tonnes – 16.6% lower on the month. For May 1-10, CPKO exports out of Malaysia were at 13,890 tonnes based on estimates by cargo surveyor Intertek Testing Services (ITS), compared to zero volumes in the same period in April with majority of the volume headed to China. PPKO exports on the other hand were 23.8% lower at 8,915 tonnes. (1 tonne = 16.5346 picul).
CPKO cif Rotterdam: Trades absent amid holidays, offers dip
CPKO offers slipped broadly in the week ending May 10, with offers as of Friday for cargoes shipped in June-July onwards all the way to October-November falling by $20-55 per tonne. Offers for nearby May-June however rose by $10 from the previous week to $1,215 per tonne CIF Rotterdam. No trades were reported, with most of Europe out for national holidays during the week, though some trading activity is expected to resume this week. On a weekly basis, the average offer level for spot or May-June shipment cargoes has fallen for the fifth straight week to $1,189 per tonne CIF Rotterdam, $12 lower compared to a week earlier. This comes as demand starts to slow after buyers were actively restocking in previous weeks, and with supply expected to gradually improve which could put some pressure on CPKO prices. However, CPKO looks to remain attractively priced against rival CCNO with the weekly average offer spread against its rival for May-June shipment widening further to $215 per tonne, $28 more compared to a week ago as average CCNO offers to Rotterdam jumped by $16 per tonne to $1,404 per tonne CIF Rotterdam. This marks the widest spread seen since early August 2022 and comes as CPKO prices slip amid improved supply expectations while tight supply dynamics for CCNO keep prices supported. Lastly, Malaysia exported zero CPKO volumes to the EU in May 1-10, based on estimates by cargo surveyor ITS, similar to the export pace seen for April 1-10.
CCNO: Offers snap to recover after three week of fall
Offers snapped to rise higher after three consecutive weeks of fall with near-by Apr-Jun rising the most by $60 to find support at above $1400 per tonne. Jun-Aug delivery were also up but failed to climb above the $1400 per tonne levels, slipping $10-13 lower. CCNO spot offers been generally trending above $1400 per tonne since the start of Apr mainly on support from CPKO rather than firm demand. CPKO and CCNO prices are coupled as both the products form laurics raw material. Overall CCNO weekly average rose by $16 to settle at $1404 per tonne while substitute CPKO eased by $12 to average $1189 per-tonne, resulting in CCNO pre-mium volleying by $28 to $215—the highest since Aug 2022 and sustaining the over $100 premium since week Aug 2023. A higher CCNO premium means oleochemical buyers are likely to stick and be reliant on CPKO for laurics raw mate-rials used in personal and home care products. There has been no CCNO trades heard for ten weeks in a row now. Offers failed to retreat as expected. Meanwhile, the Philippines CCNO FOB offers were lower for the fifth week in a row but been declining by a slower pace, after giving up $6 last week to average at $1138 per-tonne. On exports—the Philippines CCNO exports for the period Jan-Apr is up 6.40% to 382,604 tonnes compared the same period last year—according to The Unit-ed Coconut Association of the Philippines.
(Courtesy: POA, Singapore)