Shouchuang Futures: B50 timetable confirmed, palm oil surges again then pulls back

Today, the domestic palm oil market once again showed a pattern of rising then falling, influenced by increased expectations for edible oil consumption and easing tensions in the Middle East. In the night trading session, palm oil surged again to a recent high, driven by Indonesia’s Coordinating Minister for Economic Affairs announcing the implementation of B50 blending standards starting July 1, which boosted consumption expectations and caused a sharp rise in night session prices. However, during the daytime, market sentiment weakened as Trump indicated intentions to withdraw troops and planned to deliver an important speech at 9 a.m. tomorrow morning. The market anticipates easing tensions in the Middle East, leading to a significant decline in energy-related commodities in the afternoon, with oil and fat products also broadly affected. The September main contract for palm oil largely gave back the gains from the night session and closed slightly lower. Overall, the positive outlook for edible oil consumption in Southeast Asia is entering a phase of tangible realization, while the probability of a deadlock in the Iran-Middle East conflict has increased. This does not mean energy supply restrictions will end immediately, but it does impact short-term bullish market sentiment. Operationally, it is recommended to cautiously hold existing September palm oil long positions, with new positions mainly observing. (First Capital Futures)