JAKARTA: Malaysian palm oil futures edged lower on Wednesday as a rally in rival oils eased, while concern of sluggish exports remain amid high stock.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.07% to 4,124 ringgit ($872.99) per tonne by midday break.
“We’re following external markets rather closely at the moment, so when Dalian, CBOT and crude oil take a breather, we’ll follow to take profits,” a trader in Kuala Lumpur said. Dalian’s most active soyoil contract posted a 0.52% gain, while its palm oil contract rose 0.56%.
Earlier in the day, the contracts rose by as much as 1.05% and 2.07%, respectively. Soyoil prices on the Chicago Board of Trade were up 0.22%.
Oil prices eased on Wednesday after industry data showed US crude stockpiles rose more than expected, but losses were capped by supply worries.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil hits 8-week high, but profit-taking limits gains
“Fundamentally we’re looking at high stock level, better production and moderate exports,” the trader added.
Exports of Malaysian palm oil products for Oct. 1-25 fell 3.5%, compared with shipments on Sept. 1-25, cargo surveyor Intertek Testing Services said on Tuesday, while Societe Generale de Surveillance reported on Wednesday exports eased 0.6%.
Meanwhile, independent inspection company AmSpec Agri Malaysia said palm oil products exports in Oct. 1-25 rose 6.6%.
Palm oil may retest a support of 4,114 ringgit per tonne, with a good chance of breaking below this level and falling towards 4,001-4,071 ringgit range, Reuters technical analyst Wang Tao said.
Comments
Comments are closed for this article.