VEGOILS - Palm oil tracks Dalian palm and Chicago soy oils are lower; weak exports weight
Malaysian palm oil futures dropped on Thursday. They were weighed down by weak Dalian palm oil, Chicago soy oil prices, and sluggish exports.
By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange had fallen 27 ringgit or 0.67% to 4,026 Ringgit ($1,036.29) per metric tonne.
A Kuala Lumpur based trader said: "Today's crude Palm Oil Future is tracking Dalian weakness... The Ringgit is also pushing prices down."
Dalian's soyoil contract was the most active, and it rose by 0.12%. However, its palm oil contract fell by 1.29%. Prices of soy oil on the Chicago Board of Trade were down by 0.08%.
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, the contract currencies of trade, has firmed?0.05% versus 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, independent inspection company, exports of 'Malaysian Palm Oil Products' for the period February 1-25 were down 16.1% compared to a month ago. Intertek Testing Services showed a 12.1% decline.
Technical analyst Wang Tao stated that palm oil could break through the'support level of 4,036 ringgit per ton and drop into a range between 3,999-4,012 Ringgit.
(source: Reuters)
