March 23, 2023 (MLN): Palm oil prices have fallen in line with soybean oil's losses on the Chicago Board of Trade, Kuala Lumpur-based proprietary trading firm, Iceberg X, reported.
David Ng, a trader at the firm, attributes the dip to lower crude oil prices during Asia hours, which has deterred the use of biofuels derived from vegetable oils. Furthermore, weaker sentiment globally following the Fed's recent decision to raise interest rates is also impacting crude palm oil prices.
According to Ng, support for CPO futures is currently at MYR3,500, while resistance is at MYR3,900. The Bursa Malaysia Derivatives contract for June delivery is also reportedly down by MYR51, trading at MYR3,613 a ton.
The fall in palm oil prices is expected to have significant implications for the industry, with farmers and traders set to experience a significant hit to their profits.
This news followed recent reports that the demand for palm oil has been steadily increasing due to its use in the production of a wide range of consumer goods, including food, cosmetics, and biofuels.
