Palm oil prices fall for the third consecutive session due to weak demand and a strong ringgit
The price of Malaysian palm oils futures fell for the third session in a row on Tuesday. This was due to a weakening export market and a strong Malaysian ringgit.
By midday, the benchmark palm oil contract for May delivery at the Bursa Derivatives Exchange had fallen 29 ringgit or 0.71% to 4,054 Ringgit ($1,042.16) per metric ton.
Paramalingam Supramaniam is the director of Selangor brokerage Pelindung Bestari. He said that "the market was looking for a fresh direction. There wasn't much news to move?the?market."
According to cargo surveyors AmSpec Agri Malaysia and Intertek Testing Services, exports of palm?oil from Malaysia for the period February 1-20 fell between 8.9% to 12.6% compared to a previous month.
The ringgit (palm's currency) eased by 0.05% but was still at its highest level since April 2018.
The Malaysian Palm Oil Council stated on Tuesday that the price of crude palm oil is expected to be between?4,000 and 4,300 Ringgit ($1,026 to $1,103) per metric tonne in March due to tightening supplies, improved demand from India, and strong U.S. soy oil prices.
Dalian's most-active palm oil contract grew by 0.85%, while the soyoil contract grew by 0.97%. Prices of soyoil on the Chicago Board of Trade remained unchanged.
As it competes to gain a share in the global vegetable oil market, palm oil tracks price changes of competing edible oils.
The wave c may drive Palm?oil to its high of 4,156 Ringgit per ton on?February 20, driven by a surge b. ($1 = 3,8900 ringgit).
(source: Reuters)
