Malaysian palm oil futures were little changed in light trade on Thursday, stretching their losing streak into a fourth day due to a rise in the ringgit and higher stocks in the No 2 grower. Data from regulator the Malaysian Palm Oil Board showed palm oil stocks last month swelled to their highest since November to stand at 2.24 million tonnes, overturning expectations that robust export demand would dent inventories.
The August palm oil contract on the Bursa Malaysia Derivatives exchange was nearly flat at 2,290 ringgit ($611.48) a tonne by the day's close. "The reliable support at 2,320 ringgit gave way and now it is checking the next support at 2,280 ringgit, which may break soon," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that a sell signal may be triggered if the price falls to 2,279 ringgit.
Traded volume was thin at 29,584 lots of 25 tonnes each, below the more usual 35,000 lots. Analysts say the pace of shipments may cool in June ahead of the Ramazan festival that starts in the middle of the month. "We expect the growth momentum to moderate this month as the bulk of stocking-up activity ahead of the Ramadan celebrations is likely to be completed," Kenanga Investment Bank said.
Cargo surveyors on Wednesday reported that exports of Malaysian palm oil products for June 1-10 rose about 2 percent to between 468,975 and 473,307 tonnes compared to the May 1-10 period, signalling a slowdown in the surge in buying. In competing vegetable oil markets, the US July soyoil contract was flat in late Asian trade, while the most active September soybean oil contract on the Dalian Commodity Exchange gained 0.5 percent.
Comments
Comments are closed for this article.