(March 31): Malaysian palm oil futures fell for a second consecutive day on Thursday evening, as a stronger ringgit dragged the market down, outweighing an improvement in export demand.
Palm oil fell in the previous session as the local currency strengthened against the dollar, but has gained about 8% this month on persistent worries that a crop-damaging El Nino weather event would curb yields.
The ringgit gained 1% to reach 3.9000 versus the dollar on Thursday evening, its strongest level in seven months.
This made palm more expensive for foreign currency holders, as the vegetable oil is traded in ringgit.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was 0.9% lower at 2,721 ringgit (US$698) per tonne at the closing trade.
Traded volumes were 43,638 lots of 25 tonnes each, compared with a 2015 daily average of 44,600 lots.
Palm oil futures were down on the ringgit factor, said a trader based in Kuala Lumpur, but export data helped to cushion the market.
Malaysian shipments of palm products for March 1 to 31 jumped 22% to 24% from a month earlier, data released by cargo surveyors showed on Thursday, boosted by demand from India.
Technical charts show palm oil could reach a target of 2,695 ringgit, as it failed to break a resistance at 2,800 ringgit, according to Reuters market analyst for commodities and technicals Wang Tao.
No comments:
Post a Comment