Malaysian palm oil drops over 1% on profit-taking
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The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost RM49.
PHOTO: REUTERS
- Malaysian palm oil futures fell 1.02% to RM4,768 a tonne on Oct 21, as traders took profits near the top of the trading range.
- Reuters analyst Wang Tao said prices may fall back to RM4,706-RM4,736 after failing to break resistance at RM4,834.
- Malaysia’s Oct 1-20 palm oil exports rose 58.5%-78.4% month on month, while higher oil prices could support palm oil demand for biodiesel.
AI generated
JAKARTA – Malaysian palm oil futures fell more than 1% on Oct 21, with profit-taking near the top of the trading range outweighing gains in rival vegetable oils on the Dalian Commodity Exchange.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange lost RM49 (S$15), or 1.02%, to RM4,768 a metric ton at the close.
“Prices retreated on profit-taking as they hovered near the upper end of the trading range,” a Kuala Lumpur-based trader said.
Reuters technical analyst Wang Tao earlier said palm oil may retrace into a range of RM4,706 to RM4,736 per metric ton, following its failure to break resistance at RM4,834.
Dalian’s most-active soyoil contract rose 0.26%, while its palm oil contract climbed 1.31%. Soyoil prices on the Chicago Board of Trade were down 0.12%.
Palm oil tracks rival edible oils, as it competes for a share of the global vegetable oils market.
Cargo surveyors estimated that Malaysian palm oil products exports for Oct 1-20 rose between 58.5% and 78.4% from a month earlier.
Oil prices rose by more than US$1 on Oct 21 as attacks on Gulf shipping and no signs of diplomatic progress to end the Iran war fuelled supply disruption fears, with the Brent benchmark hovering near 5-month highs, while falling US crude and product inventories also lent support to the market.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. REUTERS