Palm oil to hover around 3,000 ringgit/T

SINGAPORE: Malaysian palm oil is expected to hover around 3,000 ringgit per tonne for one trading session before falling to a bearish target at 2,887 ringgit.

The contract is reluctant to fall below a pivotal support at 2,950, which serves as a triggering level to confirm a move to 2,887 ringgit. Instead, prices are hovering around a descending trendline that started from the June 3 high of 3,465 ringgit.

Signals will be relatively neutral so long as the contract remains sideways in a range of 2,950 - 3,070 ringgit, and only a rise above 3,070 ringgit could guarantee a further gain to 3,164 ringgit.

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Copyright Reuters, 2011