Palm oil prices fall on the back of profit-taking and weaker competitors
Malaysian palm oils futures fell on Tuesday, after reaching a one-and a half-month high in the previous session. This was due to weaker 'rival edible oil' and traders locking in a profit.
After two sessions of gains, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was down 16 Ringgit or 0.34% at 4,656 Ringgit ($1,125.18).
After the recent rally, we've seen profit-taking. "The?high prices' are a major problem for palm with buyers restricting their purchases," said Paramalingan Supramaniam of the Selangor-based company Pelindung Bestari.
On rival markets, the soyoil price?on Chicago Board of Trade remained unchanged. The palm oil contract fell by 0.71%, while the most active soyoil contract dropped 0.27% on the Dalian Commodity Exchange.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.
According to Intertek Testing Services, exports of Malaysian Palm Oil Products for the period June 1-20 were up 19.1% compared to a month ago. AmSpec Agri Malaysia, an independent inspection company, said that shipments over the same period increased by 25% on a month-to-month basis.
The palm ringgit's currency has risen 0.19% in value against the US dollar, increasing the price of the commodity for foreign currency buyers.
Technical analyst Wang Tao stated that palm oil FCPOc3 will likely break through a resistance level of 4,697 ringgit/metric ton by the third quarter, and then rise to the range 4,933-52,226 ringgit.
(source: Reuters)
