On the daily chart, palm oil has cleared a resistance at 3,606 ringgit, the 23.6% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit. It is likely to gain more to 3,713 ringgit.
On the daily chart, a retracement analysis on the uptrend from 2,691 ringgit to 3,888 ringgit reveals a similar resistance at 3,606 ringgit, the 23.6% level.
A drop in imports, after hitting multi-year highs in December, will be the main deterrent for stockpiles to rise, said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
The US Department of Agriculture's Buenos Aires office last week projected the corn crop at 47 million tonnes, a half million below the agency's official estimate, due to drought damage.
Despite its strength, the current rise may end in a wide range of 3,524-3,716 ringgit, as the fall from 3,888 ringgit adoped a five-wave mode, which suggests the second round of drop.
Honduran coffee growers were hammered by the intense rains wrought by Hurricanes Eta and Iota last November, which worsened a pre-existing outbreak of coffee leaf rust, also known as roya, a chronic problem for the country's farmers, Ordoñez said.