JAKARTA: Malaysian palm oil futures slid on Thursday after two straight sessions of gains as lower exports in the first half of the month and weaker rival oil weighed on prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 1.92% to end the afternoon session at 3,874 ringgit ($877.46) per tonne.
Palm prices posted a more than 5% gain over the last two sessions after data showed Malaysian palm oil inventories dropped for the first time in six months.
The easing Malaysian exports and declines in soy oil prices provided an “ideal condition for profit taking” after recent climbs, a trader in Kuala Lumpur said.
Exports of Malaysian palm oil products for Dec. 1-15 fell between 4% and 9.1% from a month earlier, cargo surveyors reported.
Meanwhile, in related oils, Dalian’s most active soyoil contract was down 0.71%, while its palm oil contract fell 0.28%. Soyoil prices on the Chicago Board of Trade declined 1.85%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm oil is expected to fall to 3,861 ringgit, as it seems to have lost its momentum after breaking above a resistance at 3,945 ringgit, according to Reuters technical analyst Wang Tao.
Source: Brecorder
