Palm eases on profit-taking, but benchmark set for weekly gain

November 19, 2021: Malaysian palm oil futures edged lower on Friday as traders locked in profits after a recent strong performance, though the benchmark was poised for a modest weekly gain.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.20% to 4,988 ringgit ($1,193.02) during early trade on Friday.

FUNDAMENTALS

* Malaysia's palm oil production is expected to slow down as the peak season ends while the monsoons bring in more rainfall.

* Exports from the world's second-largest producer during Nov. 1-15 jumped as much as 29% from the previous month, cargo surveyors earlier this week.

* Dalian's most-active soyoil contract gained 0.79%, while its palm oil contract rose 1.65%. Soyoil prices on the Chicago Board of Trade were up 0.39%.

* 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 rise into a range of 5,048 ringgit to 5,101 ringgit per tonne, driven by a wave c, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Oil prices steadied on Friday as investors paused for breath following a day of wild swings prompted by the prospect of coordinated action by the world's major economies to release official crude reserves from stocks.

* Asian shares fell on Friday as disappointing earnings from Chinese e-commerce giant Alibaba heightened worries about Beijing's broad regulatory crackdown and slowing growth in the world's second-biggest economy.

Reuters

Posted on: 2021-11-19T09:10:52+05:00

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