Wednesday, 23 November 2011 13:52
SINGAPORE: Malaysian palm oil futures dipped on Wednesday as weak manufacturing survey data from China and a downward revision of US GDP figure stoked worries about a slowing global growth.
Gloomy economic climate pushed palm oil futures lower for a third day although losses were capped by favourable fundamentals such as supply that was starting to tighten on erratic weather.
Palm oil jumped nearly 20 percent from an October low of 2,754 ringgit and has eased a little on euro zone debt crisis and concerns that the recent run-up was over done.
"The market was expecting some correction due to the past rise. Technically a correction at this point would be seen as something healthy for the market," said a trader with a foreign commodities brokerage in Kuala Lumpur.
"The fundamentals, such as the weather, haven't changed and are still strong. Exports seem to be good too," he added.
By the midday break, ...