Palm tracks Dalian, Chicago competitors lower; firm currency weight
Malaysian palm?oil?futures dropped on Thursday. They were weighed down by a weakening oil market in Dalian, Chicago and sluggish exports.
The benchmark palm-oil contract for May delivery at the Bursa Derivatives Exchange fell 48 ringgit or 1.18% to 4,005 Ringgit ($1,031.68) per metric ton?at closing.
A Kuala Lumpur-based trader said that "Today's crude Palm Oil Future is tracking Dalian's weakness...?the Ringgit is also putting a pressure on the prices."
Dalian's palm oil contract fell 1.51% while the most active soyoil contract dropped 0.1%. Chicago's Board of Trade Soy Oil prices fell 0.74%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.
The Malaysian Ringgit, which is the contract currency for trade, has firmed up 0.13% against the U.S. Dollar, hovering at its highest level since April 2018.
A stronger ringgit ?makes palm oil more expensive for foreign currency holders.
According to AmSpec Agri Malaysia, an independent inspection company, exports of Malaysian palm oil products fell 16.1% in February compared with a month ago. Intertek Testing Services showed a drop of 12.1%.
Technical analyst Wang Tao stated that palm oil could break through a?support level of 4,036 Ringgit per tonne and drop into a?range between 3,999-4,012 Ringgit. ($1 = 3.8820 ringgit)
(source: Reuters)
