Palm Reading
Palm oil was one of the big winners among commodities in the second half of 2019, and there are signals prices will remain well-supported. The most-used vegetable oil ended the year with a 44% gain, the best showing in a decade, lifted by concerns dry weather and haze will curb supplies from top growers Indonesia and Malaysia, as well as prospects for strong biofuel demand.
The latest Bloomberg survey showed prices may average 2,400 ringgit ($587) a ton this quarter, compared with 2,248 ringgit over all of 2019. Participants flagged Indonesia as a key factor, with Southeast Asia’s top economy boosting palm’s share in its biofuel blend to 30% from 20%. Still, questions remain on export markets, especially the European Union’s limit on palm oil use.
Bulls & Bears
U.S. natural gas prices have slumped for two straight weeks, but the sell-off probably isn’t over, according to traders and analysts surveyed by Bloomberg. Some 55% of respondents were bearish, the most in more than three months, as mild weather slows the seasonal decline in stockpiles.
Soybeans remained in favor with traders and analysts a third week, helped by expectations that the U.S. government will trim crop yields in an upcoming report. Bullish sentiment on gold edged out bearish and neutral views as prices extended a rally fueled by recent dollar weakness and tensions in the Middle East. Terminal subscribers can see other commodity surveys here.
--With assistance from Luzi Ann Javier, Lynn Thomasson, Krystal Chia, Yoga Rusmana, Rob Verdonck, Nicholas Larkin, Megan Durisin, Marvin G. Perez, Christine Buurma, Joe Richter, Steven Frank, Justina Vasquez and Dylan Griffiths.
This article was provided by Bloomberg News.