AIRLINK 75.18 Increased By ▲ 0.33 (0.44%)
BOP 5.01 Increased By ▲ 0.03 (0.6%)
CNERGY 4.51 Increased By ▲ 0.02 (0.45%)
DFML 41.86 Increased By ▲ 1.86 (4.65%)
DGKC 86.75 Increased By ▲ 0.40 (0.46%)
FCCL 21.50 Increased By ▲ 0.14 (0.66%)
FFBL 33.80 Decreased By ▼ -0.05 (-0.15%)
FFL 9.74 Increased By ▲ 0.02 (0.21%)
GGL 10.51 Increased By ▲ 0.06 (0.57%)
HBL 114.50 Increased By ▲ 1.76 (1.56%)
HUBC 139.52 Increased By ▲ 2.08 (1.51%)
HUMNL 11.78 Increased By ▲ 0.36 (3.15%)
KEL 5.22 Decreased By ▼ -0.06 (-1.14%)
KOSM 4.67 Increased By ▲ 0.04 (0.86%)
MLCF 37.99 Increased By ▲ 0.19 (0.5%)
OGDC 139.26 Decreased By ▼ -0.24 (-0.17%)
PAEL 26.10 Increased By ▲ 0.49 (1.91%)
PIAA 22.20 Increased By ▲ 1.52 (7.35%)
PIBTL 6.85 Increased By ▲ 0.05 (0.74%)
PPL 123.67 Increased By ▲ 1.47 (1.2%)
PRL 26.96 Increased By ▲ 0.38 (1.43%)
PTC 14.00 Decreased By ▼ -0.05 (-0.36%)
SEARL 59.50 Increased By ▲ 0.52 (0.88%)
SNGP 68.72 Decreased By ▼ -0.23 (-0.33%)
SSGC 10.47 Increased By ▲ 0.17 (1.65%)
TELE 8.42 Increased By ▲ 0.04 (0.48%)
TPLP 11.25 Increased By ▲ 0.19 (1.72%)
TRG 64.18 Decreased By ▼ -0.01 (-0.02%)
UNITY 26.58 Increased By ▲ 0.03 (0.11%)
WTL 1.46 Increased By ▲ 0.01 (0.69%)
BR100 7,953 Increased By 115.9 (1.48%)
BR30 25,681 Increased By 228.8 (0.9%)
KSE100 76,071 Increased By 956.4 (1.27%)
KSE30 24,471 Increased By 357.2 (1.48%)
Markets

Palm ends two-day gain on demand concerns, higher production outlook

  • Dalian's most-active soyoil contract gained 0.6%, while its palm oil contract rose 0.3%. Soyoil prices on the Chicago Board of Trade fell 0.6%.
Published March 24, 2021

KUALA LUMPUR: Malaysian palm oil futures slipped 1% on Wednesday, as traders booked profit after two days of sharp gains, while demand concerns and expectations of higher production further weighed on the market.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 44 ringgit, or 1.12%, to 3,886 ringgit ($941.60) a tonne by the midday break, snapping two sessions of sharp gains.

"The market is jittery, there is a demand concerns with such high prices," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

March production is likely to increase between 25% and 30%, and the market is also expecting double-digit growth in April, he said.

"At these high prices, players would rather book their profits and wait to see whether there demand will rise again after the Eid festival," Paramalingam added.

The ringgit, palm's currency of trade, fell 0.2% against the dollar, making the commodity cheaper for holders of foreign currency.

Oil prices edged higher as investors looked for bargains following the previous day's plunge, making palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 0.6%, while its palm oil contract rose 0.3%. Soyoil prices on the Chicago Board of Trade fell 0.6%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may drop to 3,798 ringgit per tonne, as it may have completed a bounce from 3,667 ringgit, Reuters technical analyst Wang Tao said.

Comments

Comments are closed.