Palm slips on Dalian palm oil
The price of Malaysian palm olein futures dropped for the second session in a row on Tuesday. This was due to profit taking.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for delivery in November had fallen 8 ringgit or 0.18% to 4,484 Ringgit ($1,066.35) per metric ton.
A Kuala Lumpur based trader reported that crude palm oil futures continued to fall amid pressure from Dalian Palm Olein.
Dalian's palm oil contract, which is the most active contract in Dalian, fell 0.96%. Chicago Board of Trade soyoil prices were down by 0.09%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks price changes of competing edible oils.
The oil prices fell after spiking nearly 2% the previous session as traders closely monitored the developments in the Russia/Ukraine conflict to ensure that fuel supplies in the region were not disrupted.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Exports of palm oil-based products from Malaysia between August 1-25 increased 10.9% to 16.4% compared to a month ago, according cargo surveyors.
The palm ringgit's trade currency, the dollar, has weakened by 0.19%, making it slightly cheaper for foreign currency buyers.
Indonesia has urged the European Union (EU) to immediately scrap countervailing duty on biodiesel imports after the World Trade Organization (WTO) backed Jakarta's major claims in its complaint to that trade body.
Technical analyst Wang Tao stated that palm oil could fall to 4,421 Ringgit per ton due to a wave c.
(source: Reuters)
