Palm oil prices bounced back as consumers looked for bargains after recent declines, and concerns emerged over the state of Argentina’s soybean crop. Last week, palm futures posted their biggest weekly drop since April 2023 on worries over falling demand. In Argentina, the world’s third-biggest grower of soybeans, some of the crop
is coming under stress due to dry weather. Soybean oil is palm’s closest substitute. “The market is being supported by bargain-buying after prices fell to recent lows,” said
a trader. “Also, concerns about dry weather in parts of Argentina prompted speculators to unwind short positions in soybean and soymeal futures, lending additional support
to palm oil prices.”, he said. (Source:Bloomberg)
