(April 5): Malaysian palm oil futures reversed earlier gains to fall in evening trade on Tuesday, as the market took profits in anticipation of higher than expected end-stocks.
Official palm oil data for March from the Malaysian Palm Oil Board (MPOB) will be announced next Monday. AReuters poll has forecast stockpiles fell by 10.3% to 1.95 million tonnes.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 0.5% to settle at 2,756 ringgit (US$703) per tonne at the end of the trading day.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 0.5% to settle at 2,756 ringgit (US$703) per tonne at the end of the trading day.
Traded volumes were 40,606 lots of 25 tonnes each, compared with a 2015 daily average of 44,600 lots.
"There's some profit taking and technical selling pressure.
Also the Reuters poll is not encouraging as some thought stocks would be lower than 1.95 million tonnes," a trader from Kuala Lumpur said.
"All this could have triggered selling ahead of the MPOB data next Monday."
The poll also forecasts Malaysian output at 1.13 million tonnes, 8% higher from February, but its lowest levels for the month since 2007, as the crop-damaging El Nino weather pattern affects fruit yields and lowers production.
There is normally a seasonal pickup in March palm output, with production rising 34% month-on-month in 2015 and 17% in 2014.
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