Palm slips due to weaker soyoil but still on track for a second monthly gain
Malaysian palm oil futures fell on Friday due to a softer soyoil. However, firmer exports kept the contract 'on track' for its second monthly gain.
By midday, the benchmark palm oil contract for October delivery at the Bursa Derivatives Exchange had fallen 42 ringgit (0.9%) to 4,641 Ringgit ($1,135.27) per metric ton.
The contract is down 1.08% this week, after three weeks of gains. However, it's still up 2.46% over the last month.
Crude palm futures fell, a reflection of weakness in the soyoil markets during Asian hours. However, losses were capped due to recent strength in exports. David Ng is a proprietary trader with Kuala 'Lumpur based trading firm Iceberg X Sdn bhd.
The cargo surveyors estimate that the exports of Malaysian Palm Oil products from July 1-25?rose between 8,1% and 15,9% compared to a month ago. Later in the day, they are expected to release their estimates for the entire month.
Dalian's palm oil contract, which is the most active contract, fell by 0.67%. Chicago Board of Trade soyoil prices were down by 1.16%.
Palm oil follows the price movement of competing edible oils as it competes to gain a share of global vegetable?oils.
The oil prices dropped but are on track to rise by about a fifth in a month as more supplies pass through critical?maritime chokepoints. This is despite the lack of significant breakthroughs between United States and Iran.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Palm's trade currency, the ringgit, has weakened by?0.32% versus the dollar. This makes the commodity a little cheaper for buyers holding foreign currencies.
A trade ministry regulation shows that Indonesia's crude palm oil price reference has dropped to $996.52 per ton in August, down from $1,000.90?in July.
Technical analyst Wang Tao stated that palm?oil could retest support at 4,647 Ringgit per ton. A break below this level would trigger a drop into the range of 4,617-4,631 ringgit.
(source: Reuters)
