Malaysian palm oil futures experienced a significant drop on Tuesday, reversing earlier gains. This decline was attributed to negative market sentiment and mirrored the fall in Chicago Board of Trade (CBOT) soybean oil prices. High inventory also contributed to the fall.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange fell sharply by 1.40% to 3,814 ringgit ($808.14) a metric ton during midday trading.
Despite this, Dalian's most-active soy oil contract saw a 1.10% increase, while its palm oil contract gained 1.98%. Conversely, soyoil prices on the CBOT decreased by 2.83%.
In the United States, soybean planting progress reached 35%, slightly above the five-year average of 34% but below analysts' estimates of 39%.
Cargo surveyor Societe Generale de Surveillance (SGS) reported that Malaysian palm oil product exports for May 1-10 totaled 263,369 metric tons.
Furthermore, India's palm oil imports in April saw a substantial increase of approximately 40.9% from the previous month, reaching 684,094 metric tons, according to a trade body statement released on Tuesday.
Traders who initiated short positions when the price broke below the 3900-3865 range are advised to consider taking profits. The price has reached its downside target and is currently at 3820. The long-term trend remains negative, while the short-term trend appears neutral to negative. If prices fall below 3800, the next potential target is 3750.
Global Futures Palm oil and Soy Oil
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(By Commoditiescontrol Bureau; +91-9820130172)
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