VEGOILS-Palm trades lower on profit-taking, market awaits export data
The market was waiting for export data to determine the next direction.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for September delivery had fallen 52 ringgit or 1.23% to 4,178 Ringgit ($982.60).
A Kuala Lumpur trader stated that the market today is focused on profit-taking after its recent increase on the backs of Dalian palm oil.
Dalian's palm oil contract, which is the most active contract in Dalian, gained 0.02%. Chicago Board of Trade soyoil prices were down 0.43%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
Oil prices
On Tuesday, after U.S. president Donald Trump's long 50-day deadline to Russia for it to end the Ukraine War and avoid sanctions was eased, immediate supply concerns were reduced.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's currency has weakened by 0.05% against dollars, making it cheaper for foreign buyers.
India's imports of palm oil reached an 11-month peak in June, as refiners increased purchases to take advantage of a discount on rival oils such as soyoil or sunflower oil and to replenish their depleted stocks.
Technical analyst Wang Tao stated that palm oil could test resistance at 4,257 Ringgit per metric tonne. A break above this level would lead to gains of up to 4,295 Ringgit.
(source: Reuters)
