Palm drops before Malaysian data is released
The price of Malaysian palm oils futures dropped on Wednesday, ahead of the monthly supply and demand report from the Malaysian Palm Oil Board. Soyoil also lost ground during the morning session.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for February delivery fell 14 ringgit or 0.34% to 4,092 Ringgit ($993.45) per metric ton.
The market opened lower due to concerns about the rising stock levels and weakness in the soybean oil markets. David Ng, a proprietary 'trader' at Kuala Lumpur based trading firm Iceberg X Sdn Bhd said that prices are'supported above 4,000 ringgit. Resistance is at 4,180 ringgit.
Malaysian palm oil stocks reached a record high of more than six-and-a half years in November. They increased 13% over the previous month to 2,84 million metric tons, as the production exceeded the weak export demand.
Dalian's palm oil contract, which is the most active contract, dropped by 1.6%. Chicago Board of Trade soyoil prices fell by 0.47%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of rival edible oils.
The Malaysian Ringgit, the palm industry's currency of trade, fell by 0.15% to the U.S. Dollar, lowering the price for holders of foreign currencies.
The economy minister announced?on? Tuesday that Argentina would lower export taxes for grains, such as soybeans and corn. This move was welcomed by Argentina's powerful agriculture sector, which is a key support base for the president Javier Milei.
According to Wang Tao, a technical analyst, Palm?oil could reach 4,158 ringgit a ton after settling around the support level of 4,056 ringgit.
(source: Reuters)
