On June 8, judging from high-frequency data, Malay palm oil production rebounded significantly in May, and exports were still weak. It is expected that Malay palm oil stocks will increase in May.
At this stage, there is no problem with the palm oil production in Malaysia and Indonesia, and the demand for inventory replenishment in major consuming countries is not strong. Therefore, the fundamentals of the production areas are still lacking positive drivers for the time being. It is expected that the price of palm oil in the production areas will still be affected by the trend of other oils and fats in the international market. Influence, pay attention to the persistence and intensity of the rebound of CBOT soybean oil and crude oil.
China’s palm oil imports in June will increase compared with May, and the price/performance ratio of Chinese palm oil will also decline, which will affect demand. It is expected that the reduction of palm oil inventory will slow down.
