Mumbai, May 14 (Commoditiescontrol): Malaysian palm oil futures fell on Thursday, May 14, despite an initial rise, due to increased production, lower export figures, and a strengthening Malaysian ringgit.
The benchmark August contract on the Bursa Malaysia Derivatives Exchange closed at 3,804 ringgit per metric ton, down 1.48% or 52 ringgit.
Independent inspection companies AmSpec Agri Malaysia and Intertek Testing Services reported significant declines in Malaysian palm oil exports for the first half of May. This, coupled with a 2.40% strengthening of the ringgit against the US dollar, added downward pressure on prices.
Contrasting trends were observed in Dalian's most-active soy oil contract as it rose by 1.66%, and its palm oil contract gained 1.43%, but soyoil prices on the Chicago Board of Trade dropped by 0.11%.
The decline in palm oil prices comes amid a broader rally in Asian stock markets, fueled by optimism following a milder US inflation report. Weather forecasts predicting dry conditions in Argentina, a major soybean producer, also contributed to market volatility.
Traders are advised to consider short positions, targeting 3,775 ringgit with a stop loss at 3,835 ringgit. The short-term trend for palm oil appears negative, while the long-term outlook remains neutral.
Global Futures Palm oil and Soy Oil
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(By Commoditiescontrol Bureau; +91-9820130172)
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