Palm oil falls on profit-taking, stronger ringgit and weaker rivals in Malaysia

Palm Kernel Oil

Malaysia

Market & Price Trends

Published Mar 28, 2024

Tridge summary

On Tuesday, Malaysian palm oil futures saw a decline, closing at 4,237 ringgit per metric ton, the lowest in two days, due to profit-taking, a stronger Malaysian ringgit, and weaker performances in rival edible oils markets. The recent gains in palm oil prices were driven by slow production growth and strong exports, but the recent strengthening of the ringgit and downturns in other edible oils have pressured prices. Investors are now awaiting U.S. consumer confidence and trade data for further direction, with palm oil's premium over soft oils expected to continue due to tight supply.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Malaysian palm oil futures fell on Tuesday amid profit-taking, while a stronger ringgit and weaker rival edible oils also weighed on the market. The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange edged down 10ringgit, or 0.24%, to 4,237 ringgit ($898.24) a metric ton at closing, the lowest close in two days. The contract closed down from an intraday high of 4,280 ringgit. The market is likely “taking a breather… after making hefty gains from a slow rise in production amidst robust exports,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics. The Malaysian ringgit MYR, palm’s currency of trade, strengthened 0.13% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders. Investors are now awaiting U.S. consumer confidence and trade figures due out later in the day for further direction. Rival edible oils suffered bigger declines. Dalian’smost-active soyoil contract DBYcv1 fell ...

Source: UkrAgroConsult