Palm oil data due in week 5—9 September and expectations | Data due 5 9 Sept

1.) Malaysia August supply and demand estimates—Focus will be on the extent of the rise in August end-month stocks…

2.) MPOA 1-31 August Malaysia production—As described above production is seen rising by…

3.) UN FAO Food Price Index for August—As expected global food price index tumbled for the fifth successive month in August, down by 1.90% but the overall index remains 7.90% higher than a year ago. Fall in all food price indices—cereal, dairy, meat, vegetable oil, and sugar bears down on the overall index. Vegetable oil indices fell by 3.30% month-on-month, moving slightly below August of last year. The decline in the international palm, sunflower, and rapeseed oils more than offset the higher soybean oil quotations. The resumption of sunflower oil shipment from Ukraine’s seaport also kept prices lower though demand remains subdued. Fall in palm prices from abundant supplies out of Indonesia and peak production season in Malaysia weighed down on cash CPO pricing by 13% on CIF Rotterdam month-on-month average basis and lower by 15% on CIF Kandla, India basis. Though most traded RBD palm olein notched a 13% rise on FOB Malaysia. Futures’ most active month pricing notched a 4.14% rise in ringgit basis in August. Meanwhile lackluster demand for rapeseed, soybean oil, and sunflower oils will add to the weaker international vegetable oil price index in August.

4.) Bank Negara Malaysia (the central bank) sets the benchmark interest rate— Interest rates are likely to be turned a notch higher estimated to be by 25 basis points to 2.50%. ..

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