May 23, 2023 (MLN): Malaysian palm oil fell on Tuesday, eliminating gains from Friday, as subdued demand, rising production, and losses in rival edible oils weighed on the market.
The benchmark palm oil contract fell by 1.02% to 3,393 ringgit a tonne.
Palm oil benchmark found some supporting ground around the 3350 ringgit area, consequently jumping by 2.62% on Friday, however, the gains were lost in the first two trading sessions of this week.
This can be a sign of weakness, and breaking below this key level may open up room for further decline.
Palm oil is also affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics, stated that trading was depressed by the same factors from last week, surging palm production outlook for May, losses in related soybean oil, resumption of sunflower oil supply from the Black Sea, and a sluggish Malaysia May export outlook.
Exports of Malaysian palm oil products for May 1-20 rose by 1.6% MoM from the earlier corresponding month, the latest data by cargo surveyor Intertek Testing Services showed on Saturday.