KUALA LUMPUR, June 16: Malaysian palm oil rose 1.5 per cent after a rally in rival soyaoil but the key resistance of 1,400 ringgit a ton was unbroken with players showing restraint ahead of next week’s exports data.
The possibility of a currency revaluation — the Archilees heel of the market for weeks now — may also have tempered the bullish mood, dealers suspected.
A higher ringgit will mean less money for palm oil sellers who quote in dollars.
The Malaysian unit has been fixed at 3.8 to the dollar for the last six years.
Two cargo surveyors, Societe Generale de Surveillance and Intertek Testing Services, reported this week drops of 10 per cent and 16 per cent, respectively, for palm oil exports between June 1 and 15 compared with May 1 to 15.
Their estimates for June 1 to 20 are due on Monday.
At Thursday’s close, the new benchmark third-month crude palm oil futures contract on Bursa Malaysia Derivatives, September, ended up 20 ringgit, or 1.5 per cent, at 1,395 ringgit ($367.11) a ton.
