Palm slips due to weak export data and early harvest expectations
Malaysian palm oil futures fell on Monday as the market was weighed down by a sluggish February export report and an expectation of a?accelerated harvest.
By midday, the benchmark palm oil contract for May delivery at the Bursa Derivatives exchange fell 16 ringgit (0.4%), to 4,030 Ringgit ($1,034.13) per metric ton. The contract increased by 0.22% during the previous session.
Palm oil prices were under pressure due to the expectation of an early harvest of palm oil in February before Ramadan.
He said that "Destination Markets are mostly quiet, apart from some sporadic India coverage." Cargo surveyors estimate that?exports for Malaysian palm oil products between February 1-15 have decreased between 11.2% to 14.9% on a monthly basis.
The palm ringgit's trade currency strengthened by 0.18% against dollar making the commodity a little more expensive for foreign currency buyers. Investors weighed the implications of upcoming U.S. Iran talks aimed at reducing tensions, against a backdrop where OPEC+ is expected to increase supply.
Palm oil is less appealing as a biodiesel feedstock due to weaker crude oil futures.
The Dalian Commodity Exchange will be closed for the Lunar New Year holiday and resume trading on 24 February. The Chicago Board of Trade is closed as well for a holiday.
The 'Bursa Derivatives exchange will be closed for public holidays on the 17th and 18th of February. Technical analyst Wang Tao believes that palm oil could end its 'bounce' in the resistance zone of 4,064-4.083 ringgit/metric ton and then retest support levels at 3,999.
(source: Reuters)
