File photo
Malaysian palm oil futures opened lower on Tuesday, pressured by lacklustre performances in rival edible oils, although a weaker ringgit limited the downturn. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange slid RM35, or 0.77 percent, to RM4,507 (US$1,015.55) a metric ton in early trade.
Dalian's most-active soyoil contract fell 0.61 percent while its palm oil contract shed 0.22 percent. Soyoil prices on the Chicago Board of Trade were down 0.67 percent. Palm oil tracks the price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
The ringgit, palm's currency of trade, weakened 0.14 percent against the dollar, making the commodity cheaper for buyers holding foreign currencies. Indonesia has set a target to replant 120,000 hectares of smallholders' palm oil plantations this year, the chief executive of the state plantation fund said.
Brazil's soybean harvest for the 2024/25 season reached 23 percent of the planted area, as of last Thursday, up 8 percentage points from the previous week, while 32 percent of the total area had been reaped, agribusiness consultancy AgRural said.
Brent crude oil prices paused in early trading, after posting gains in the previous session following a drone attack on an oil pipeline pumping station in Russia that reduced flows from Kazakhstan. Palm oil may break resistance at RM4,548 per metric ton and rise into the RM4,593-RM4,633 range, Reuters technical analyst Wang Tao said.
Source: Online/OFA
Comment Now