Palm extends its losses as a firmer Ringgit weighs
The price of palm oil futures in Malaysia fell for the second session running on Tuesday, due to a stronger Ringgit.
At midday, the benchmark palm oil contract on Bursa Derivatives exchange for July delivery fell 22 ringgit (0.55%) to 3,943 Ringgit ($911.47) per metric ton.
A Kuala Lumpur based trader reported that palm has continued to fall as a stronger ringgit encouraged heavy selling activity in the market.
Dalian's palm oil contract, which is the most active contract, fell by 1.55%. Chicago Board of Trade soyoil prices were down by 1.25%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
The palm ringgit's trade currency strengthened by 0.78% against dollars, increasing the price of the commodity for buyers who hold foreign currencies.
Early Asian trading saw crude oil prices fall as investors reduced their expectations of demand growth due to the ongoing US-China trade war.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Technical analyst Wang Tao stated that palm oil could test resistance at 4,006 Ringgit per metric tonne. A break above this level would open the door to 4,040 Ringgit.
(source: Reuters)
