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Wednesday, 22 July 2015 00:24
NEW DELHI: Malaysian palm oil edged higher on Tuesday, climbing from the last session’s 1-1/2-week low on expectations of a drop in output due to holidays at the end of the Muslim fasting month of Ramadan.
Palm oil for October delivery on Bursa Malaysia Derivatives added 30 ringgit, or 1.37 percent, to 2,219 ringgit a tonne by the close.
The contract dropped as low as 2,165 ringgit a tonne on Monday, its lowest since July 9.
“Producers are talking about their July production being lower by 8 percent versus last month,” one Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for July 1-20 fell 15.5 percent to 907,574 tonnes from 1,074,410 tonnes shipped a month ago, cargo surveyor Intertek Testing Services said in its latest estimate on Monday.
Another cargo surveyor, Societe Generale de Surveillance, reported a 16.1 percent drop in exports over the same period.
Volume stood at 18,173 lots of 25 tonnes each, substantially higher than the roughly 35,000 lots typically traded.
Wang Tao, a Reuters market analyst for commodities technicals, had forecast that palm oil may edge up to 2,209 ringgit per tonne as it had pierced resistance at 2,190 ringgit.
The resistance was provided by the 38.2 percent Fibonacci retracement on the fall from the July 3 high of 2,285 ringgit to the July 8 low of 2,132 ringgit.
The dollar slipped on Tuesday after renewed expectations for rising US interest rates drove it to a five-week high against the yen and a three-month peak against a basket of currencies.
US August soyoil gained 0.85 percent.
