Palm oil prices are largely unchanged amid a tepid market.
The market was apathetic due to the lack of significant cues, and palm oil futures in Malaysia traded sideways on Wednesday.
By midday, the benchmark palm oil contract on Bursa Malaysia Derivatives Exchange fell 2 ringgit or 0.04% to 4,571 Ringgit ($1,123.65).
The futures are trading rangebound. There has been no major announcement or change in market sentiment, said Paramalingam Supramaniam of Selangor-based brokerage Pelindung Bestari.
Supramaniam stated that despite the fact that some people are pricing El Nino into their prices, the demand is still subdued due to the uncertainty surrounding the latest developments in the Middle East.
Dalian's palm oil contract, which is the most active contract in Dalian, rose by 0.42%. Chicago Board of Trade soyoil prices rose 0.38%.
Palm oil monitors?the movements in price of rival edible oils as it competes to gain a share on the global vegetable oils markets.
The government announced that Indonesia would subsidise diesel fuel for mid-sized fishing vessels with funds raised from levies on palm oil and cocoa.
The Indonesian Palm Oil Association reported on Wednesday that Indonesian palm oil exports in May were 1.996 million metric tonnes, down from 2.664 millions tons the previous year. This represents a 25.1% decrease.
A leading industry group said that India's imports of palm oil fell to their lowest level in 14 months in June, as the demand for the oil collapsed, and buyers cut back on purchases due to a shrinking discount compared to other oils.
Palm's trade currency, the ringgit, has strengthened by 0.2% against the US dollar, increasing the price of the commodity for buyers who hold foreign currencies.
Oil prices rose on Wednesday, as President Donald Trump reimposed his naval blockade against all Iranian ports. Meanwhile, Iran launched attacks on U.S. Infrastructure in the region.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
After failing to break the falling trendline, Wang?Tao, a technical analyst, said that palm oil prices could?retrace' to 4,507 Ringgit ($1,108), per metric tonne.
1 Please enter the freight rates from Peninsula Malaysia/Sumatra for China, India and Pakistan, and Rotterdam. You can also double-click between the brackets. Double-clicking on the codes between the brackets will show you the cash and future edible oil prices. To move to the next page, press F12. To go back, hit F11. 1
(source: Reuters)
