Mumbai, May 16 (CommoditiesControl): Malaysian palm oil futures experienced a downturn on Thursday despite opening higher, impacted by increased production, declining exports, and a stronger ringgit.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell by 37 ringgit, or 0.29%, to 3,820 ringgit ($815.89) per metric ton during the morning session.
Contrasting trends were observed in other markets: Dalian's most-active soy oil contract rose by 1.66%, and its palm oil contract gained 1.43%, while soyoil prices on the Chicago Board of Trade increased by 0.28%.
Malaysian palm oil exports saw a significant decline. Independent inspection company AmSpec Agri Malaysia reported a 17.6% drop in exports to 574,760 metric tons for May 1-15, compared to 697,449 tons during April 1-15. Similarly, cargo surveyor Intertek Testing Services noted a 5.2% decrease in exports to 600,777 metric tons during the same period.
Meanwhile, weather forecasts from the Buenos Aires Grains Exchange indicate that Argentina, a major global grains and soybeans producer, will likely face a lack of rain and lower temperatures over the next week.
In the broader financial landscape, Asian stock markets rallied, driven by Wall Street's record highs following a milder U.S. inflation report that raised expectations of at least two rate cuts by the Federal Reserve this year.
The Malaysian ringgit strengthened by 0.53%, adding to the pressure on palm oil prices.
Traders are advised to consider short positions at current levels, targeting 3,775 with a stop loss placed above 3,835. The short-term trend appears negative, while the long-term trend remains neutral.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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