Palm oil drops on profit-taking, lacklustre soy oils
19/03/2024 (XM), Jakarta - Malaysian palm oil futures shed early strength to edge lower on Tuesday, in the absence of no new catalysts in the market and weakness in Dalian and Chicago soy oils.
The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange lost 0.83% to 4,201 ringgit ($888.16) per metric ton at closing. The contract had risen as much as 0.7% earlier in the session.
"Bursa Malaysia CPO futures opened higher, but (were) quickly seen easing on profit-taking as most of the bullish factors and news are already priced in and market is now lacking a fresh momentum to hold on the recent gains," said Anilkumar Bagani, commodity research head of Mumbai-based Sunvin Group.
Weakness in Chicago soyoil futures and the South American soyoil prices has cautioned palm oil buyers, he added, as the palm oils premium over the competition has widened.
Dalian's palm oil contract DCPcv1 was up 0.02%, while its soyoil contract DBYcv1 fell 0.51%. Soyoil prices on the Chicago Board of Trade BOc2 edged 0.53% lower.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia maintained its export tax for crude palm oil at 8% for April and raised its reference price, according to Malaysian Palm Oil Board.
Exports of Malaysian palm oil products for March 1-15 were up 8.4% from shipments in February 1-15, independent inspection company AmSpec Agri Malaysia said, while cargo surveyor Intertek Testing Services recorded a 3.3% increase in the same period.
Palm oil may fall into a range of 4,158 ringgit to 4,190 ringgit per metric ton, following its failure to break resistance at 4,326 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.7300 ringgit)
Source: Reuters