Palm declines on weak rival oil, stronger ringgit
Malaysian palm oil exports for Jan. 1-20 declined by 18.2% to 23% due to a stronger ringgit, making it less attractive to foreign buyers. Analysts predict prices may retest recent lows. Global stocks gained amid optimism over US policies, while oil prices remained steady as markets assessed Trump’s energy policies.
Malaysian ringgit, the contract currency of trade strengthened 0.74 per cent against the US dollar.
A stronger ringgit made palm oil less attractive for foreign currency holders.
Exports of Malaysian palm oil products for Jan. 1-20 are estimated to have fallen between 18.2 per cent and 23 per cent, according to cargo surveyors Intertek Testing Services and independent inspection company AmSpec Agri Malaysia.
Palm oil FCPOc3 may revisit the Jan. 16 low of 4,106 ringgit per ton, as a bounce triggered by this barrier seems to have completed around 4,265 ringgit, Reuters technical analyst Wang Tao said.
Global stocks gained as a flurry of new policies from US President Donald Trump, combined with robust corporate earnings bolstered investor optimism, while tariff uncertainty kept the dollar near two-week lows.
Oil prices were little changed in early trading, as markets weighed US President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supply.
To read more about Edible Oil News continue reading Agriinsite.com
Source : Business Times
Recommended for you
Leave a Reply
Leave a Reply
