March 06, 2023 (MLN): Palm oil prices were reported to be lower in early trade today, following the downward trend of palm olein on the Dalian Commodity Exchange and soybean oil's losses last Friday on the Chicago Board of Trade.
David Ng, a trader at Kuala Lumpur-based proprietary trading firm Iceberg X, stated that the decline in prices was likely to be temporary, as weaker output in the future was expected to support prices.
According to Ng, the pressure on CPO futures is expected to ease moving forward, as palm oil production slows down due to unfavorable weather conditions in some of the major producing regions.
This could provide support for prices, although it remains to be seen how much impact this will have in the long run.
Ng added that he believes support for CPO futures will be at MYR4,200, while resistance is expected at MYR4,450. These levels will likely serve as important indicators for traders and investors in the coming weeks, as they evaluate the trajectory of the palm oil market.
Palm oil is a widely used commodity, with applications in the food, cosmetics, and biofuel industries. As such, fluctuations in palm oil prices can have significant implications for various sectors of the global economy.
For consumers, changes in palm oil prices can also impact the cost of goods at the grocery store, particularly in developing countries where palm oil is a staple ingredient in many food products.
Overall, the palm oil market remains a complex and dynamic space, with numerous factors influencing supply and demand.
As traders and investors continue to monitor the latest developments, it will be interesting to see how the market evolves in the coming weeks and months.
