Palm oil falls to second session of lower Dalian prices
The price of Malaysian palm oils futures continued to fall on Tuesday, as trading resumed following a long weekend. This was due to the decline in Dalian edible oils. However, strong export data helped limit losses. The benchmark 'palm oil' contract for April delivery at the Bursa Derivatives exchange was down 16 Ringgit (0.38%) at $4,213 Ringgit ($1,072.01) per metric ton.
In January, the contract rose by 4.42%, marking its first gain in five month. Today's export data and SPPOMA production figures?continued to show positive trends, which helped offset the downside. A Kuala Lumpur trader stated that late bargain buying occurred toward the end of the month, "narrowing previous losses". He was referring to data on December production from South Malaysia Palm Oil Association (SPOMMA), and surveyor data regarding December exports.
According to data from AmSpec Agri Malaysia, a Malaysian inspection company, and Intertek Testing Services (cargo surveyor), exports of palm oil products are expected to rise between 14.9% and 17,9% on a month-over-month basis. Five dealers report that India's palm-oil imports surged by 51% to a 4-month high in January, due to the discount offered to soyoil, which prompted refiners and importers to increase purchases. Soyoil imports fell to a 19 month low. The statistics bureau reported on Monday that Indonesia will export 23.61 millions metric tons (or crude and refined palm oils) in 2025. This is an increase of 9.09% over the previous year. Dalian's soyoil contract, which was the most active contract in Dalian, fell 1.08% while palm oil contracts dropped 0.26%. Prices of soyoil on the Chicago Board of Trade jumped by 2.33%.
Chicago soybean futures rose on Tuesday as traders struggled with teetering commodity markets and rising gold prices.
As palm oil competes to gain a share in the global vegetable oils market, it 'tracks' price movements of other edible oils.
Technical analyst Wang Tao stated that palm oil could test support at the level of 4,201 ringgit for a metric ton. A break below this may cause a drop into the range of 4,115 to 4,158 ringgit.
(source: Reuters)
