Palm falls as data shows slower exports
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Malaysian palm oil futures fell last week, after data from a cargo surveyor showed exports grew more slowly than expected in January. The benchmark palm oil contract for April delivery on Bursa Malaysia Derivatives Exchange dropped 0.2% to RM2,299 a tonne. Trading volumes stood at 24,751 lots of 25 tonnes each.
“The export numbers released are below yesterday’s (Wednesday’s) market rumour. The ringgit’s strength also pushed the market lower,” a Kuala Lumpur-based trader said, adding that the coming long holiday weekend should prompt traders to cover short positions. “That should limit any big sell-offs,” the trader said.
Cargo surveyor Intertek Testing Services said yesterday exports of Malaysian palm oil products for January rose 14.7%, while independent inspection company AmSpec Agri Malaysia reported a 15.5% increase.
Palm oil may slide into a range of RM2,256-RM2,274 per tonne, as its correction from the Jan 28 high of RM2,333 looks incomplete, Wang Tao, a Reuters market analyst for commodities and energy technicals said.
Questions & Answers
Q.What was the specific percentage increase in Malaysian palm oil exports for January, according to the cargo surveyors?
What was the specific percentage increase in Malaysian palm oil exports for January, according to the cargo surveyors?
Intertek Testing Services reported a 14.7% rise in exports for January. AmSpec Agri Malaysia, another independent inspection company, stated a 15.5% increase for the same period.
Q.Besides the export data, what other factor contributed to the market falling last week?
Besides the export data, what other factor contributed to the market falling last week?
A Kuala Lumpur-based trader noted that the strengthening of the ringgit also exerted downward pressure on the market. This currency movement, alongside the export figures, influenced the palm oil prices.
Q.What price range might palm oil slide into, according to the Reuters market analyst?
What price range might palm oil slide into, according to the Reuters market analyst?
Wang Tao, a Reuters market analyst, suggested that palm oil might fall into a range of RM2,256-RM2,274 per tonne. He believes its correction from a recent high is not yet complete.
Q.What was the exact price of the benchmark palm oil contract for April delivery last week?
What was the exact price of the benchmark palm oil contract for April delivery last week?
The benchmark palm oil contract for April delivery on Bursa Malaysia Derivatives Exchange dropped by 0.2% to RM2,299 a tonne. This price reflects the market's reaction to the slower export growth data.
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