VEGOILS-Palm falls on profit taking; traders await export data
The price of Malaysian palm oils futures fell on Tuesday due to profit-taking, a weakening market sentiment and traders awaiting export data.
At the midday break, the benchmark palm oil contract on Bursa Derivatives exchange for December delivery fell 18 ringgit (0.4%), to 4,481 Ringgit ($1,061.09) per metric ton. The contract has fallen in the two sessions that have preceded it.
A Kuala Lumpur based trader stated that the market was lower due to profit-taking, and a weakening sentiment.
The trader added that traders are also waiting for the October 1-15 export numbers to be released in order to get a better idea of the market's direction.
On Wednesday, cargo surveyors will release their estimates of exports.
Dalian's palm oil contract, which is the most active contract in Dalian, fell by 0.09%. Chicago Board of Trade soyoil was down by 0.61%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Early signs of a thawing in U.S. China trade tensions helped to boost market sentiment and ease concerns about global fuel demand.
Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.
The palm ringgit's trade currency strengthened by 0.05% versus the dollar. This made the commodity slightly more expensive for buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil could test resistance at 4,554 Ringgit per ton. A break above this level would lead to gains of up to 4,619 Ringgit.
(source: Reuters)