Palm oil falls to second session of lower Dalian prices
The Malaysian palm futures continued to lose money on Tuesday, as trading resumed following a long weekend. This was due to the decline in edible oils from Dalian.
By midday, the benchmark palm oil contract for?April delivery at the Bursa Derivatives exchange was down 32 Ringgit or 0.76% to 4,197 Ringgit ($1,066.31) per metric tonne.
In January, the contract gained 4.42%, its first gain in five month.
A Kuala Lumpur trader stated that "Palm Oil Futures opened lower due to?spread adjustment against weaker competitor oilseeds". The trader said that market participants are waiting for the South Malaysia Palm Oil Association's (SPOMMA) December production data and surveyor data on December exports.
Five dealers report that India's palm-oil imports soared by 51% to a 4-month high in January, due to the discount offered to rival soyoil.
The statistics bureau announced on Monday that Indonesia will export 23.61 millions metric tons crude and refined palm oils in 2025. This is an increase of 9.09% over the previous year.
Intertek Testing Services, a cargo surveyor, said that exports of Malaysian products containing palm oil rose 17.9% in January compared to the previous month.
Dalian's soyoil contract with the highest volume fell 1.13% while palm oil contracts dropped 0.29%. Prices for soyoil on the Chicago Board of Trade rose 1.1%.
Chicago soybean futures rose on Tuesday, recovering some of the losses from the previous session as crude oil prices remained steady. Wheat?and corn also traded higher.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price movements of competing edible oils.
Technical analyst Wang Tao stated that palm?oil could test support at the level of 4,201 ringgits per metric ton. A break below this may cause a drop into the range of 4,115 to 4,158 ringgits.
(source: Reuters)
