Malaysia soyoil prices at par on tight stocks

In a rare development, the premium and discount between for Malaysia's major vegetable oils, including palm olein, soyoil and sunflower oil has almost disappeared and they are selling at par with each other due to tight inventories globally, trading executives said Friday (April 17).

"Since availability of both soy oil and palm oil is tight, the prices of both are testing medium-term highs and the gap has narrowed considerably," said a Kuala Lumpur-based analyst.

Overnight, cash soy oil traded around US$777 to US$785 a tonne, free on board, almost at par with cash palm olein prices.

Around 3,000 tonnes of cash soy oil for May shipment traded at US$785/ton, FOB Brazil, said a trader in Singapore.

He added 5,000 tonnes of soy oil for May shipment traded at US$777/ton, FOB Argentina.

Cash palm olein for May shipment was traded at US$775/tonne and US$780/tonne, FOB Malaysian ports, he added.