Palm prices are on the decline; traders wait for new export data to provide them with more information.

The price of Malaysian palm futures fell on Tuesday as traders waited to see what new information would be revealed by the August export figures. A weak Chicago soyoil and a stronger Ringgit also weighed.

By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for November delivery had fallen 4 ringgit (0.11%) to 3,717 Ringgit ($850.18).

A Kuala Lumpur based trader stated that crude palm oil will likely trade between 3,700 and 3,7500 Ringgit. Export and production data is still awaiting.

Early in the session, the contract was traded between 3,702 and 3,737 ringgit. Later in the day, cargo surveyors will publish data on exports for August 1-20.

Exports of palm oil-based products from Malaysia between August 1-15 were estimated to have fallen by 15.8% to 22,3% in comparison to the same time period last month.

Dalian's palm oil contract, which is the most active contract, gained 0.98%. Chicago Board of Trade soyoil prices edged down 0.05%.

Palm oil monitors the price movement of other oils in order to compete with them for a market share on the global vegetable oils.

The contract is less attractive to foreign currency holders because the ringgit has strengthened by 0.18% to the U.S. Dollar, its highest level since mid-February, 2023.

Technical analyst Wang Tao stated that palm oil could test resistance at 3,764 Ringgit per metric tonne. A break above this level would confirm an inverted head and shoulders pattern as well as a target price of 3,809 Ringgit. ($1 = 4.3720 ringgit)

(source: Reuters)