FCPO Strategy UPDATE: SELL FCPO JUL ONCE BREAK DOWN 2664, CUT LOSS ABOVE 2677
(April 26): Malaysian palm oil futures rose on Tuesday, up from a one-week low touched in the previous session, supported by a decline in the ringgit against the dollar.
A weaker ringgit lent support to palm but earlier gains were limited due to higher production and slowing exports, said a trader based in Kuala Lumpur.
The market later strengthened in the evening as some traders covered short positions, despite expectations that sluggish demand would eventually weigh on prices, a dealer said.
The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 0.8% at 2,675 ringgit (US$682) per tonne at the end of the trading day. It earlier fell for two consecutive days, seeing its sharpest decline since March 2 on Friday.
Traded volumes were 51,121 lots of 25 tonnes each, higher than a 2015 daily average of 44,600.
Malaysia's ringgit, the currency palm oil is traded in, fell 0.5% to the dollar on Tuesday, making the vegetable oil cheaper for holders of foreign currencies.
The ringgit fell to a one week low of 3.9495 per dollar, before rising to trade around 3.9200 in the evening, following news of state investment fund 1Malaysia Development Berhad defaulting on a bond interest payment.
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