March 09, 2023 (MLN): Palm oil prices rose on Thursday following overnight gains in soybean oil on the Chicago Board of Trade, according to a note from Phillip Capital.
This increase came after a period of profit-taking and selling pressure in recent days. However, crude palm oil futures are expected to experience a brief rebound in prices as the market adjusts to new supply and demand dynamics, according to CY Soh Chuen Yean, a risk management and hedging consultant at Axcelearn based in Kuala Lumpur.
Soh has set the support level for CPO futures at MYR4,100 and resistance at MYR4,500. The benchmark Bursa Malaysia Derivatives contract for May delivery has risen by MYR13 to MYR4,193 a ton.
Palm oil is a versatile vegetable oil that is widely used in the food industry and is also used in the production of biofuels, cosmetics, and other products. The Malaysian palm oil industry is a significant contributor to the country's economy, and fluctuations in palm oil prices can have an impact on global markets.
Investors and traders will be keeping a close eye on palm oil prices and market dynamics in the coming weeks to determine if this rebound in prices is sustained or if further adjustments are necessary.
