(April 8): Malaysian palm oil futures fell on Friday evening in line with competing vegetable oils, marking a fourth consecutive session of losses this week.
Futures were range-bound earlier in the day pending official government data from the Malaysian Palm Oil Board (MPOB), which is scheduled to release March data on Monday.
Palm oil end-stocks in March are seen dipping below the 2-million-tonne mark for the first time in a year, a Reuterssurvey showed, declining 10.3% from a month earlier to 1.95 million tonnes. Output, however, is forecast to come in at the weakest for the month since 2007.
The palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange dropped 1.1% to reach RM2,680 (US$687) per tonne at the close of trade, an intraday and two-week low. Traded volumes were 31,037 lots of 25 tonnes each, lower than the 2015 daily average of 44,600 lots.
"There's no excitement over external markets as the Dalian is in down trading range," said a trader at a brokerage firm in Kuala Lumpur. "The market is waiting for new leads pending the MPOB report. That's why volume is light today."
The trader later said the market saw some technical selling after breaking immediate support at RM2,700.
Palm oil may fall to RM2,629 per tonne as it has got out of a neutral range of RM2,716–RM2,776, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
No comments:
Post a Comment