Palm oil drops on profit-taking after reports of weaker export data
Malaysian palm oil futures fell 0.33% to RM4,210 per metric ton on Thursday, reversing Wednesday’s gains. The drop was driven by profit-taking and weaker July 1–15 export data, with shipments falling over 5%. Despite this, firmer crude oil prices and a weaker ringgit support palm’s competitiveness, especially for biodiesel use.
JAKARTA: Malaysian palm oil futures slipped on Thursday, erasing gains from the previous session, due to profit-taking after reports of weaker export data for the July 1-15 period.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost RM14, or 0.33 per cent, to RM4,210 (US$991.29) a metric ton, as of 0232 GMT.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the July 1-15 period fell 5.3 per cent, from June 1-15, while according to cargo surveyor Intertek Testing Services, it fell 6.2 per cent.
Soyoil prices on the Chicago Board of Trade were slightly down 0.05 per cent. Dalian’s most-active soyoil contract edged 0.12 per cent higher, while its palm oil contract slipped 0.11 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose in early trade on Thursday, reversing the previous session’s losses, buoyed by stronger-than-expected economic data from the world’s top oil consumers and signs of easing trade tensions.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, weakened 0.17 per cent against the dollar, making the commodity cheaper for holders of foreign currencies.
Palm oil may retest resistance at RM4,231 per metric ton, with a good chance of breaking above it and rising into the RM4,254 to RM4,292 range, Reuters technical analyst Wang Tao said.
Asian stocks dithered ahead of earnings from heavyweight technology companies and as market anxiety lingered over the uncertain tenure of Federal Reserve chief Jerome Powell.
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Source : The Business Times
