Athena Market Buzz

1600 14122023 Athena Market Buzz Thursday 


Good afternoon,

ITs a buy Palm oil and Buy Soybean oil kind of a day. Sunflower oil too close to Soybean oil hence wait and watch. 

Mdex experienced a marginal opening decline, remaining mostly unchanged by lunchtime, with February down by 2 points at RM 3668 and March down by 2 points at RM 3691. However, as the day progressed, a recovery ensued due to bargain hunting and short covering. The day concluded with February up by 21 points at RM 3691 and March up by 20 points at RM 3713. Despite the recent correction, today's recovery did not breach the RM 3750 mark, leaving room for further correction. Consequently, we advise buyers to exercise patience and consider making longs at levels between RM 3550-3450.

Yesterday witnessed robust business activity in India's Refined, Bleached, and Deodorized (ROL) market at USD 830. However, by this morning, sellers adjusted their offers to USD 840 to do 835 after the withdrawal of cheaper offers. Local trades persisted between INR 810-815 at various ports, but sellers have now withdrawn and are looking to negotiate higher prices tomorrow.

CBOT bean oil settled with a decline last night, with January down by 69 points at 50.42 and March down by 65 points at 50.41. Presently, as of this report, there is a marginal increase, with January up by 29 points at 50.12 and March up by 30 points at 50.15. Improved weather conditions and the devaluation of the Argentine peso may contribute to slightly more affordable prices. The bean oil basis saw a slight firming, sufficient to maintain the flat price. While January offers remain at USD 960, February is quoted lower at USD 945, and there are reports of someone quoting USD 930 for March. There is a rumored trade for March degum at USD 928, but its accuracy is uncertain. With soybean oil prices nearing those of sunflower oil, we recommend readers consider long positions in degum soybean oil around USD 920. Prices between USD 900-950 are deemed safe for making long positions for JFM, while for MJJ, it is advisable to wait until prices drop below USD 900. In India, beans are maintaining stability at 50,000-51,000 for plant delivery, but pressures may arise during the summer due to moisture loss and degum price corrections. Stockists are advised to book profits in case of a rally before March 2024. In the hinterland, solvent oil is trading around INR 830-835, while port-side Degum is available at WCI at INR 825 + duty.

Sunflower oil sellers in India are quoting USD 930-935, but there are reports of offers and trades around USD 924-920 levels (unverified). Argentina cargo is available at USD 910, but buyers are reluctant to risk purchasing old crop. Black Sea sunflower oil is maintaining around USD 785 with no active buyers. Turkey, however, is securing cheaper cargo with CIF Mersin offers around USD 880 and bids at 860. For Izmir, bids are reportedly at USD 830-840 for a volume of approximately 9000 MT. Europe is being indicated at USD 930, but buyers have withdrawn to USD 900 levels for Jan/Feb cargo. We reiterate that these levels are attractive for sunflower oil, especially for actual users in JFM, but due to the proximity of these prices to soybean oil, a reduced demand is anticipated. For MJJ, it is prudent to wait for prices to drop below USD 900 before considering buying decisions.

  • *Argentina SBO*
  • DJ 24 -950F/-1250F
  • Feb 24 -960/-1280
  • Mch 24 -980/-1300
  • MJJ 24 -1250/-1350
  • *Brazil SBO*
  • Jan 24 -650/-
  • MJJ 24 -1150/-1350
  • *SFO 6 ports*
  • Jan - vs 925
  • Feb - vs 925
  • JFM 950 vs 920
  • AMJ 940 vs 920
  • JAS 950 vs 930
  • Palm oil Market Close
  • Bmd : Feb 3691 (+21)
  • H 3704/ L 3656
  • Vol : 52,313
  • Oln  
  • Jan 820 vs 
  • Jfm 825 vs 817.5
  • Amj 835 vs 830
  • Jas 825 vs 815  
  • Ond 825 vs 
  • Rbdpo: -5
  • Strn: Jan 820 (deld) 
  • Pfad: Jan 710 (deld)
  • Local Cpo: Dec 3660
  • Laurics 
  • Cpko: Dec 239 (pk) / 240 (pg)
  • Rbdpko: Dec 925
  • Rbdpkoln: Dec 875
  • Rbdpks : Dec 1055
  • Sbo :  
  • Dec 4982 (unch)
  • Jan 5011 (+28)
  • Mar 5019 (+34)
  • Dce :  
  • Jan 7020 (-52)
  • May 7070 (-54)
  • Black Sea sunflower oil Jan 785 vs 760
  • Russian sunflower oil Jan 780 vs —
  • Turkey mersin indicated at USD 875 vs 850
  • Spain indicated for Jan USD 930 vs 900
  • Italy indicated for Jan at USD 925 vs —
  • CIF India LW indicative offers around USD 930 (some also claim offers at USD 915) vs buyers at USD 900
  • Currency INR 83.27, RM 4.6689, Rub 89.95 and Euro 1.0901

Thanks and regards


Vivek Pathak 

Athena Tradewinds 

(All views are personal and we do not claim to be 100 % correct. Trade very carefully and at your own risk)

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