March 10, 2023 (MLN): Palm oil prices have dropped in line with soybean oil's overnight losses on the Chicago Board of Trade, Kuala Lumpur-based proprietary trading firm Iceberg X revealed on Friday.
David Ng, a trader at the firm, noted that the two oils often trade in tandem due to their usage in similar products.
However, Ng is optimistic that the negative sentiment will not continue for long. He points out that seasonal factors are likely to result in weaker output, and surveyors are expected to report stronger export data for the first ten days of March later in the day.
According to Ng, CPO futures have support at MYR4,000 and resistance at MYR4,400. The Bursa Malaysia Derivatives contract for May delivery is currently down by MYR89 at MYR4,116 a ton.
Palm oil prices are a significant factor in the global agricultural commodities market. As such, traders and investors will be keeping a close eye on developments in the coming days, with the hope that the current dip in prices will prove temporary.
