Palm falls on weaker Dalian; market awaits crucial data
Malaysian palm oil futures fell on Monday, tracking weakness in Dalian edible oils ahead of MPOB data. The November contract slipped 0.27% to RM4,436 a tonne. Inventories are expected to rise for a sixth month as production outpaces exports. Technical support is seen at RM4,405, with possible further downside.
JAKARTA: Malaysian palm oil futures declined on Monday, tracking weaker edible oils at the Dalian futures, while the market awaited the Malaysian Palm Oil Board (MPOB) data due on Wednesday.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost RM12, or 0.27 per cent, to RM4,436 (US$1,051.7) a metric ton in early trade.
Dalian’s most-active soyoil contract fell 0.17 per cent, while its palm oil contract shed 0.59 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) gained 0.27 per cent.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia’s palm oil inventories are forecast to rise for a sixth consecutive month in August, as production continues to outpace exports despite a recovery in demand, a Reuters survey showed.
Meanwhile, China imported 49.49 million tonnes of crude oil in August, up 4.9 per cent month-on-month, per data from China’s General Administration of Customs.
Oil prices climbed in early trade, trimming some of last week’s losses, after OPEC+ agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, firmed 0.02 per cent against the dollar, making the commodity slightly expensive for buyers holding foreign currencies.
Palm oil may retest support at RM4,405 per metric ton, a break below which could open the way toward RM4,367-RM4,381 range, Reuters technical analyst Wang Tao said.
Stocks rose and the dollar wobbled after dismal US labour data sealed the case for an interest rate cut this month, while the yen fell as investors girded for uncertainty in Japan following Prime Minister Shigeru Ishiba’s resignation.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : The Business Times
