Palm oil falls for fifth straight day as rival oils decline

TheEdge Fri, Jun 11, 2021 12:06pm - 1 week ago


SINGAPORE (June 11): Malaysian palm oil futures fell for a fifth consecutive session today as they tracked losses in rival oils on the Dalian Commodity Exchange and the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell RM72, or 1.9%, to RM3,773 (US$917.22) a tonne during early trade.

For the week, the contract is set to fall after two straight weekly gains. Refinitiv data shows a weekly fall of 8.6% so far to RM3,781, the lowest since April 16.

"Palm's down due to weak external markets," a Kuala Lumpur-based trader told Reuters, referring to rival oils on the Dalian and CBOT.

Dalian's most-active soyoil contract fell 0.7%, while its palm oil contract slipped 2%. Soyoil prices on the CBOT slid 0.4%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may fall into a range of RM3,495 to RM3,635 per tonne as it has broken support at RM3,888 per tonne, Reuters analyst Wang Tao said.

Fundamentals

US bond yields fell to three-month lows and a broad gauge of Asian shares rose today as investors saw enough one-off factors in US consumer price data to back the US Federal Reserve's (Fed) conviction that rising inflation will be transitory.






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