NEWS CENTER

NEWS CENTER

News Center

Company News

Industry News

Palm oil price center of gravity or upward shift due to seasonal inventory de-stocking

Classification:

Author:

Source:

Release time:

2023-05-06

Recently, market concerns about Black Sea food exports have risen again. The Black Sea food agreement has been extended twice and will expire on May 18. Russia is not optimistic about the prospects of the Black Sea food agreement, Eastern European countries have banned Ukrainian grain imports, Ukrainian grain exports can be said to be the enemy. Since last weekend, Poland has been the first to announce a ban on the import of Ukrainian grain and a dozen other food products. Hungary also announced similar measures, the ban will continue until June 30. This week, Slovakia became the third EU member to announce a ban on imports of Ukrainian grain. The reason for the import ban in these countries is that Ukraine's grain flooded the domestic market, which led to a drop in prices and damaged the income of domestic farmers, triggering large-scale protests. As of April 19, the Ukrainian side stated that the grain transportation in the Black Sea Security Corridor was interrupted for the second consecutive day, further adding to the uncertainty of Ukraine's grain exports. Market concerns about geopolitical risks are rising, not only supporting the international grain market, but also boosting the oil market.

Judging from the Indonesian palm oil market, several regions in Indonesia are currently entering the dry season. According to the Indonesian Meteorological Bureau, a weak El Nino phenomenon is likely to occur this year, which will not have a great impact on oil palm productivity. Indonesia's palm oil production is expected to increase in 2023. However, under the influence of the growth of biodiesel demand in Indonesia, the protection of domestic biofuel demand remains the top priority. As a result, the Indonesian government is reviewing its palm oil export policy in order to manage domestic supply after the Ramadan peak demand season. At present, the Indonesian government is evaluating the DMO matching coefficient after Ramadan. There are many voices about the reduction of the DMO matching coefficient, which has also become a hot topic in the market recently. If the DMO matching coefficient is lowered, even if Indonesia's palm oil production increases, the export scale may still be limited, which will also help Malaysia's palm oil export demand to remain strong.

From the perspective of the Malaysian palm oil market, as Malaysian palm oil production enters a seasonal increase cycle and export demand is weak, Malaysian palm oil stocks are at risk of accumulating again in the future. According to data released by ITS, a shipping survey agency, Malaysia's palm oil exports were 536000 tons from April 1 to 15, down 28.72 percent from the previous month. According to data released by AmSpec, Malaysia's palm oil exports decreased by 33.73 from April 1 to 15. The weakening of supply and demand makes Malaysian palm oil prices or face inventory pressure, and the increase in exports will mainly depend on the adjustment of Indonesia's export policy.
Unlike the risk of inventory accumulation that may be triggered by the seasonal increase in international palm oil production, domestic palm oil stocks will enter a seasonal de-chemical cycle. At present, the domestic port palm oil stocks fell for 4 consecutive weeks. From the perspective of absolute inventory, palm oil inventory is still at a relatively high level, but considering the rising import cost and the continuous inversion of internal and external price difference, this will continue to restrict the import demand of palm oil. As of April 19, the in stock price of 24-degree palm oil in Guangdong was 7940 yuan/ton, and the cost of importing 24-degree palm oil from Malaysia during the May shipment was 8694.38 yuan/ton, which was 754 yuan/ton higher than the in stock price in Guangdong. Import profits are seriously upside down, affecting the enthusiasm of subsequent traders to import. At present, it is estimated that 350000 tons of edible palm oil will arrive in China in April, 450000 tons in May and 400000 tons in June.With the pressure of imported palm oil coming to Hong Kong reduced, the growth of domestic seasonal blended oil demand is expected to support palm oil consumption, which is conducive to accelerating the pace of palm oil inventory removal, thus promoting the domestic palm oil futures price to follow the pace of international palm oil futures price. At the same time, the pattern of external strength and internal weakness may change, the internal and external price gap is expected to be repaired, and the center of gravity of palm oil prices will move upward as a whole.

Key words:

alcohol ether AEO-9 alcohol ether AEO-3 C10 alcohol (decanol) C8 alcohol (octanol) C14 alcohol C18 alcohol (stearyl alcohol)

Previous Page

Surfactant industry

None

Next Page

Previous Page:

Surfactant industry

Next page:

None

Related News

What are fatty alcohols

Fatty alcohols are aliphatic alcohols having a chain of 8 to 22 carbon atoms. Fatty alcohols typically have an even number of carbon atoms and one hydroxyl group attached to the end of the carbon chain. One of the raw materials for detergent surfactants. The general formula is ROH. R of the detergent alcohol is generally a C12 to C18 hydrocarbon group. Such a high carbon fatty alcohol has an amphiphilic character, I .e., a hydrophobic group such as a hydrocarbon chain and a hydrophilic group such as a hydroxyl group in the molecule. However, due to the solubility in water is very low, it is necessary to add hydrophilic groups or convert hydroxyl groups into sulfuric acid groups, so that after the hydrophilic-lipophilic balance value reaches the necessary value, the fatty alcohol derivative has enough hydrophilic groups to dissolve in water, and can become aggregates (micelles), the fatty alcohol derivative is the surfactant. For example, dodecanol is insoluble in water, but when it is changed into sodium lauryl sulfate, due to the addition of a sulfate group (-SO3-), the water solubility becomes better, and micelles can be formed in water, reaching a certain concentration, showing very good surface activity. It is the use of this characteristic, fatty alcohol as raw material, produced a variety of surfactants with various excellent properties.

MIYAKO XH09 High Performance Nonionic Surfactant

Nuclease: The New Favorite in Sportswear Laundry Detergent

Epoxy ethane prices continue to rise