Palm oil falls due to weaker Dalian oils, and US tariffs
Malaysian palm futures fell on Tuesday due to weaker Dalian oils, and worries about upcoming U.S. trade tariffs against key trading partners.
By midday, the benchmark contract for palm oil delivery in May on the Bursa Derivatives exchange fell by 105 ringgit or 2.34% to 4,379 Ringgit ($980.74) per metric ton.
The increasing uncertainty on the global vegetable markets has also scared traders, said Paramalingam Supramaniam. Director at Selangor-based brokerage Pelindung Bestari.
Palm oil contracts in Dalian fell 2.8%, while soyoil contracts lost 1.15 percent. The Chicago Board of Trade's (CBOT), which trades soyoil, saw a rise of 0.23%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
A survey shows that Malaysian palm oil inventories will fall to their lowest levels in almost three years in February due to the production disruptions caused in the country by the flooding.
According to dealers, India's palm oils imports increased 36% from January to 374,000 tonnes in February, after dropping to their lowest level in March 2011 in the preceding month.
The oil prices fell after U.S. president Donald Trump halted military aid for Ukraine, and markets prepared themselves for U.S. duties on Canada and Mexico.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
The palm ringgit's currency has strengthened by 0.02% against U.S. dollars, making it slightly more expensive to buyers who hold foreign currencies.
Technical analyst Wang Tao stated that palm oil could fall to 4,435 Ringgit per metric tonne, due to a wave c.
(source: Reuters)
