KUALA LUMPUR: Malaysian palm oil futures fell to their lowest in a week on Tuesday, their second straight day of losses as concerns persisted over high inventory levels in the world’s second largest producer.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 0.1 per cent at 2,170 ringgit ($526.06) a tonne, after earlier hitting 2,152 ringgit, its lowest since April 16.
Palm oil is biased towards breaking support at 2,155 ringgit per tonne and falling towards next support at 2,110 ringgit, following its failure to break a resistance at 2,227 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
“Production is not coming down, and demand has not been so great. There is a worry that end-stocks are not reducing,” said a futures trader in Kuala Lumpur.
He added that palm oil production throughout Malaysia so far this month was showing a monthly gain of 2-5pc.
Published in Dawn, April 24th, 2019
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