JAKARTA: Malaysian palm oil futures slipped on Tuesday, weighed down by weak export data and weakness in Chicago soyoil contract, while stronger Dalian vegetable oils limited losses.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 6 ringgit, or 0.16%, to 3,715 ringgit ($849.14) a metric ton at close.
“Crude palm oil futures traded lower in the afternoon session because of export data. After digesting the information, the market fall back to its trading range of 3,700-3,750 ringgit waiting for further lead,” a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products in Aug. 1-20 dropped between 16.7% and 18.4% from the same period last month, data from cargo surveyor Intertek Testing Services and AmSpec Agri showed.
Dalian’s most-active soyoil contract rose 0.9%, while its palm oil contract gained 1.43%. Soyoil prices on the Chicago Board of Trade edged 0.58% lower.
Palm oil rises on bargain-hunting
Palm oil tracks price movements of related oils as it competes with them for a share of the global vegetable oils market.
The ringgit, the contract’s currency of trade, strengthened 0.07% against the U.S. dollar to its highest since mid-February 2023, making the contract less attractive for foreign currency holders.
Palm oil may test resistance at 3,764 ringgit per metric ton, a break above which could confirm both a target of 3,809 ringgit and an inverted head-and-shoulders, Reuters technical analyst Wang Tao said.
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