Mumbai, June 11 (Commoditiescontrol): Malaysian palm oil futures reversed earlier gains on Tuesday, June 11th, pressured by weaker competing oils and anticipated lower exports in June. However, the Malaysian ringgit's depreciation somewhat mitigated losses.
By midday, the benchmark August palm oil contract on the Bursa Malaysia Derivatives Exchange had slipped 0.36% to 3,905 ringgit ($827.33) per metric ton. This decline followed similar trends in soy oil contracts on the Dalian and Chicago Board of Trade exchanges, which fell 1.23% and 0.69%, respectively.
Palm oil prices are intrinsically linked to the performance of related oils due to their competition for market share in the global vegetable oils market. Favorable growing conditions for U.S. corn and soybean crops, coupled with dipping crude oil prices and a weakening Malaysian ringgit, have further influenced palm oil's price trajectory.
According to the sources, the weaker ringgit offers some support to palm oil prices, the anticipation of lower Malaysian exports in June has limited upward potential in the near term.
A report from LSEG suggests that palm oil prices may fall this week towards support levels of 3,850-3,870 ringgit per ton, with resistance anticipated at 3,980-4,000 ringgit. Market participants will closely monitor these developments as they navigate the evolving landscape of the palm oil market.
The palm oil market is currently experiencing downward pressure due to a confluence of factors, including weakening rival oils, export concerns, and fluctuating global commodity prices. While a weaker ringgit provides some support, the overall outlook remains cautious, with traders and investors closely monitoring market trends and price movements.
Global Futures Palm oil and Soy Oil
(By Commoditiescontrol Bureau; +91-9820130172)
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