10,607.3555.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Palm oil slips on weaker crude after three days of gains

Palm oil climbed 1.87% to its highest since April 20 in the previous session.

Reuters|
Last Updated: May 20, 2020, 09.14 AM IST
0Comments
Agencies
Palm Oil
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
KUALA LUMPUR: Malaysian palm oil futures snapped a three-day winning streak on Wednesday due to lower crude oil prices, while the resumption of buying by India and Malaysia's renewed commitment to its biodiesel programme capped losses.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 22 ringgit, or 1.01%, to 2,160 ringgit ($496.32) by 0320 GMT.

Palm oil climbed 1.87% to its highest since April 20 in the previous session.

FUNDAMENTALS
Indian buyers have resumed purchases of Malaysian palm oil after a four-month gap following a diplomatic row, with buying spurred by a fall in domestic inventories and discounted prices.

Malaysia will restart its nationwide roll-out of the B20 biodiesel programme in September after postponing it due to a two-month partial lockdown to contain the coronavirus, alleviating concerns that the mandate would be abolished amid low crude prices.

Oil prices dipped as concerns over the lasting economic fallout from the pandemic outweighed signs of improving demand and production cuts by major oil producers.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 0.04%, while its palm oil contract was up 0.31%. Soyoil prices on the Chicago Board of Trade were trading 0.18% lower.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may end its current gains around a resistance at 2,223 ringgit per tonne, as suggested by a gap and a projection analysis, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asian stocks are likely to come under pressure on Wednesday, tracking declines on Wall Street, while gold prices were buoyed by safe-haven demand as economic indicators pointed to more signs of recession.
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Also Read

Palm oil prices fall on projected drop in consumption

Lockdown wipes out demand for palm oil and maida

Palm oil gains on stronger crude, soyoil

India resumes purchases of Malaysian palm oil: Traders

India resumes purchases of Malaysian palm oil: Traders

Palm oil set for better fortunes after pandemic wrecked bull run

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service