Palm oil continues to lose money on weaker crude and rival edible oils
Malaysian palm oil futures continued to fall on Thursday. They were impacted by a decline in the price of crude oil and other vegetable oils. Market participants were waiting for export data to gauge market demand.
By the mid-day break, the benchmark palm oil contract on Bursa Malaysia's Derivatives Exchange had fallen 1.96% to 4,542 Ringgit ($1,105.11 per metric tonne).
The contract has lost 0.83% over the last two sessions.
A Kuala Lumpur based trader stated that "Today's CPO Futures are tracking the external weakness in order to sell down the market while waiting for export data June 1-25 to lend support."
Dalian's?most-active palm oil contract?declined by 2.19%. Chicago Board of Trade soyoil prices fell by 0.34%
As demand concerns outweighed rising expectations from the Middle East, oil prices continued to decline on Thursday. They are now at levels seen just before the Iran War.
Palm oil follows the price movement of other?edible?oils, as it competes to gain a share in?the global vegetable oils market. Palm oil is often affected by crude oil price movements, as weak crude oil futures can make palm oil a less attractive feedstock for biodiesel.
Technical analyst Wang Tao stated that palm oil could break support at 4,574 ringgit and fall towards 4,542 ringgit. ($1 = 4.1100 ringgit)
(source: Reuters)
