Malaysian palm oil prices at five-year low

  • Business
  • Wednesday, 20 Aug 2014

JAKARTA: Malaysian palm oil prices sank to their lowest levels in almost five years on Tuesday as declining crude and soybean oil prices pushed them down.

By Tuesday's close, the benchmark November contract on the Bursa Malaysia Derivatives Exchange had shed 1.05 percent to 2,066 ringgit ($655) per tonne, its lowest since October 2009. Total traded volume stood at 40,824 lots of 25 tonnes, above the daily traded average of 35,000 lots.

"The market is down and there was no impetus to move higher," said a trader with a foreign commodities brokerage in Kuala Lumpur, "although it is a little oversold."

Weak crude, soybean and soybean oil prices had helped push palm prices to new lows after a lull in trading earlier in the day, he said.

Palm typically tracks soyoil, a rival edible oil and common food and fuel substitute. Soy markets are facing pressure over forecasts of a bountiful soybean crop from the United States, a top exporter.

Palm oil prices failed to breach the 2,100 ringgit per tonne level during the day, which could have signalled that a bottom price had been reached, he said. "Then we'd see a proper retracement coming (and) whatever bearish elements (would) have already been factored into prices," he said.

Technicals showed a bearish target at 2,046 ringgit had resumed after palm pierced its Aug. 18 low of 2,083 ringgit, said Reuters market analyst Wang Tao.

In other markets, Brent crude oil prices on Tuesday were close to the 14-month lows reached the previous day as weak demand and improving supplies weighed on the market, although global political risk still provided some support.- Reuters
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Business News

AirAsia Group plans air taxi, drone delivery service
Tengku Zafrul: Govt tapping into more data for effective aid
AirAsia recovering well via digital transformation
Texas grid operator made $16bil price error during winter storm, watchdog says
CPO futures to see quiet trading next week
Boeing 737 MAX declared emergency after engine shutdown, lands safely
Senate stalls on Biden's US$1.9tril COVID aid bill over jobless benefits fight
Oil surges after OPEC+ holds cuts, strong US jobs growth
US labor market roars back; full recovery still years away
GLOBAL MARKETS-Wall Street surges on jobs data, global equity markets regain ground

Stories You'll Enjoy