Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
News
- Trade negotiations are becoming increasingly urgent, Trump says Powell is about
- The US dollar and the Japanese yen are in a three-week consolidation, with a lon
- The US and Japan finalize huge trade agreement but leave car tariff suspense, Pr
- US dollar index rises slightly, Trump clarifies "behind" gold tariffs
- The U.S. job vacancy weakens + bond market volatility slows down, and the pound
market analysis
The long and short factors enter a new round of game, and the direction of palm oil is about to be chosen.
Wonderful introduction:
Youth is a nectar made with blood drops of will and sweat of hard work - it will last forever; youth is a rainbow woven with unfading hope and immortal yearning - it is brilliant and brilliant; youth is a copper wall built with eternal persistence and tenacity - it is impregnable.
Hello everyone, today XM Forex will bring you "[XM Group]: Long and short factors have entered a new round of game, and the direction of palm oil is about to be chosen." Hope this helps you! The original content is as follows:
On Thursday (November 6), the palm oil market of Bursa Malaysia Derivatives Exchange was swept away by gloom. The benchmark January contract closed at 4,149 ringgit/ton, rebounding by 41 ringgit during the day, an increase of 1%. The rise ended a decline that saw the contract close at a 17-week low, as market sentiment took a breather from the strong performance of palm oil.
The consecutive gains are linked to the external market
The core driver of today’s market clearly www.xmserving.comes from China’s domestic market. The main palm oil contract on the Dalian www.xmserving.commodity Exchange closed up 1.32%, and the soybean oil contract also rose 0.84%, providing direct upward momentum for the horse market. A Kuala Lumpur trader pointed out: "The solid improvement in Dalian palm oil prices has boosted Malaysian palm oil futures." This linkage relationship is rooted in the www.xmserving.competitive landscape of the global vegetable oil market. Palm oil prices need to always pay attention to the trends of www.xmserving.competitors such as soybean oil and rapeseed oil. At the same time, soybean oil prices on the Chicago Board of Trade rose 0.76% simultaneously, further consolidating the short-term bullish atmosphere in the vegetable oil sector. In the currency market, the ringgit strengthened 0.19% against the US dollar, which would normally weaken the attractiveness of palm oil exports priced in ringgit, but today its negative impact was overshadowed by stronger overall sentiment in the vegetable oil market.
New trends in fundamentals: South American policies and Indian planting
In addition to immediate price linkage, the market is paying close attention to several potential changes that may reshape the mid- to long-term supply and demand pattern.
Key policy signals came from South America. Brazil’s Supreme Court has decided to suspend all proceedings regarding the soy moratorium pending a final ruling on the matter. This private initiative started in 2006The agreement aims to prevent soybean cultivation in deforested areas of the Amazon rainforest, and uncertainty about its legal status has plagued the Brazilian soybean industry's forward supply expectations. Although the Supreme Court's intervention did not make a final judgment, it temporarily froze the relevant legal disputes and provided the market with a short policy observation period. Any decision that is conducive to maintaining or strengthening the agreement may restrict the expansion potential of Brazil's soybean area in the future, which will then be transmitted to global soybean oil supply and create opportunities for the expansion of palm oil market share.
In Asia, the prospects for oilseed production in India, another major consumer, are eye-catching. Industry assessments show India's rapeseed area is expected to hit a record high this year, spurred by unprecedented purchases of rapeseed meal from China and good soil moisture from above-average rainfall. India is the world's largest vegetable oil importer, and a significant increase in domestic oilseed production could theoretically curb its demand for vegetable oil imports in the www.xmserving.coming months, especially the price-sensitive palm oil. This potential increase in domestic supply is a key variable to continue to track in the www.xmserving.coming months.
Institutional Views and Market Outlook
The current market rebound is seen more as a technical repair driven by the external market rather than a fundamental reversal in fundamentals. Analysts from well-known institutions believe that the market is in a sensitive period where long and short factors are intertwined. On the one hand, weather and policy variables in South American production areas, uncertainty in the supply of sunflower oil in the Black Sea region, and palm oil production in Southeast Asia may enter a seasonal production reduction cycle, which together constitute potential support for prices. On the other hand, expectations for a bumper production of local oilseeds in India, fluctuations in inventory levels in major importing countries, and potential constraints on www.xmserving.commodity demand from the global macroeconomic environment have set limits on the upside.
Based on www.xmserving.comprehensive analysis, the palm oil market rebounded by leveraging related markets after hitting key technical support levels. However, whether the market can have sustainability and intensity will depend on the substantial evolution of the above-mentioned long and short factors. Traders' attention should focus on the upcoming release of the Malaysian Palm Oil Board's monthly supply and demand data, real-time changes in India's vegetable oil import procurement rhythm, and further clarity on weather and policy trends in South America. The market may maintain high volatility in the short term, and directional choices need to be driven by clearer fundamental signals.
The above content is all about "[XM Group]: The long and short factors enter a new round of game, and the direction of palm oil is about to be chosen". It is carefully www.xmserving.compiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Spring, summer, autumn and winter, every season is a beautiful scenery, and they all stay in my heart forever. Gone away~~~
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here