Palm futures in Dalian are weaker due to a stronger ringgit and a lower palm oil price.
The Malaysian palm oil market extended its losing streak on Thursday to a third day, due to the slightly stronger ringgit and a lack of positive signals from a major market conference.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for April delivery fell 16 ringgit or 0.39% to 4,045 Ringgit ($1,036.12) per metric ton.
The firmer ringgit is continuing to impact export competitiveness, and dampen buying interest. Kang Wei Cheang of StoneX, a Singapore-based agricultural commodity analyst, said that Dalian palm oil was also lower, which added pressure to the vegetable oils?complex. The Price Outlook Conference held in Kuala Lumpur also generated mixed reactions from traders, and no new bullish catalysts have emerged in the short term.
The ringgit (palm's trade currency) strengthened by 0.13% against dollar, increasing the price of the commodity for buyers who hold foreign currencies. Dalian's palm oil contract dropped 0.9%, but its most active soyoil contract rose 0.15%. Chicago Board of Trade soyoil prices rose by 0.42%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils. Malaysia has raised its March crude palm oil price while maintaining the export duty of 9%, according to a circular posted on the Malaysian Palm Oil Board's website. Analysts said that Indonesia's decision to pause the expansion of biodiesel and its expectation for higher production in "the coming months" will likely pressure palm oil prices. However, strong demand and a slowing in growth could limit any downside. According to Julian McGill of Glenauk Economics, the founder and MD, Indonesia's palm seed sales for 2025 indicated that "planting" continued despite land seizures caused by a government task force. According to Wang Tao, a Fibonacci analysis suggests that palm oil could stabilise at a price of 4,063 Ringgit per ton, and then bounce back, as suggested by the Fibonacci ratio.
(source: Reuters)
