months yesterday as traders took up positions after rival vegetable oil
Traders said palm oil as well as US and China
soyoil markets gained after falling on concern that key commodities
importer China could tighten credit after a slew of positive economic
The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 1.8 per cent, or RM44 to RM2,488 after dropping to RM2,407 — a level not seen since November 19.
Trading volumes nearly doubled to 18,081 lots of 25 tonnes each.
market is oversold and RM2,400 is the immediate support level but right
now there are not many helpful factors to support it,” said a trader
with a local commodities broker.
“China tightening credit is a concern and stocks are high.”
other traders say there may be some momentum to push the market towards
its 200-day moving average of RM2,354 on high stocks, weak export
growth and the rising US dollar.
“In Malaysia, there is no
margin for refiners. The right price for them is RM2,400, but
plantation sellers want to quote higher,” said a refiner in the
“This is not taking into account that stocks in December were at a 13-month high.”
Stocks in Malaysia, the world’s No. 2 palm oil producer, usually fall from December onwards but plantations in top producer
Indonesia shipped cargoes over the last month to escape a 3 per cent export tax that was introduced in January.
Source : Business Times