Palm eases ahead of holidays despite stronger Chicago soyoil
Malaysian palm oil futures fell 0.28% to 4,206 ringgit/ton despite stronger Chicago soyoil prices. Weaker exports outweighed supply concerns. The ringgit’s depreciation made palm oil cheaper for foreign buyers. Meanwhile, Brazil’s soybean forecast was cut to 171 MT due to lower yields. Technical analysis suggests palm oil may fall further to 4,045-4,106 ringgit.
KUALA LUMPUR: Malaysian palm oil futures fell on Tuesday ahead of the Lunar New Year holidays, despite support from stronger Chicago soyoil prices.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 12 ringgit, or 0.28%, to 4,206 ringgit ($958.09) a metric ton in early trade.
The contract rose 0.67% over last two sessions.
Fundamentals
- Soyoil prices on the Chicago Board of Trade were up 0.27%. The Dalian Commodity Exchange is closed from Jan. 28 to Feb. 4 for the Lunar New Year holidays.
- Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
- The ringgit, palm’s currency of trade, weakened 0.34% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
- Oil prices hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.
- Brazil’s 2024/25 soybean crop is expected to total 171 million metric tons, agribusiness consultancy AgRural said, lowering its forecast by 500,000 tons due to lower yields in the states of Mato Grosso do Sul, Parana and Rio Grande do Sul.
- Palm oil may break support at 4,163 ringgit per metric ton, and fall into the 4,045 ringgit to 4,106 ringgit range, Reuters technical analyst Wang Tao said.
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Source : Business Recorder
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