The price of VEGOILS - Palm has fallen due to profit taking before the GAPKI conference
Malaysian palm futures declined on Tuesday, after four sessions of gains. Profit taking was a factor in the decline. This is due to profit-taking ahead of the Indonesian Palm Oil Association's (GAPKI), which will be held later this week.
By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for January delivery had fallen 41 ringgit or 0.84% to 4,850 Ringgit ($1,110.86).
Profit-taking is evident today, just before the GAPKI Conference. "Palm's fundamentals are relatively stable," says Paramalingam Supramaniam of Selangor-based brokerage Pelindung Bestari.
The Indonesian Palm Oil Conference, 2024 and 2025 Price Outlook, will be held in Bali from November 6-8.
Dalian's palm oil contract, which is the most active contract in Dalian, fell by 0.97%. Chicago Board of Trade soyoil prices increased by 0.07%.
As palm oil competes to gain a share of the global vegetable oils industry, it tracks the price changes of competing edible oils.
The palm oil price increased by 0.09% when the ringgit, the currency used for trade in the palm industry, was strengthened against the U.S. Dollar.
The oil prices fluctuated widely ahead of the expected closeness of the U.S. Presidential election. Oil prices were up by more than 2% Monday, as OPEC+ postponed plans to increase production in December.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Exports of palm oil products from Malaysia rose between 11.5% to 13.7%, according to cargo surveyors. This was compared to a month before.
A trade ministry official revealed that Indonesia increased its crude palm oil price reference for November from $893.64 per metric ton in October to $961.97. The new price means that the November export tax will be $124 per metric ton.
Wang Tao, a technical analyst, says that palm oil could retrace to 4,747-4.791 ringgit/metric ton after failing to break through resistance at 4,883 ringsgit.
(source: Reuters)
