Crude palm oil futures slid 4.8 per cent yesterday, hitting a two week low, as traders booked profits after an industry analyst over the weekend painted a short-term bearish picture of the market.
Palm oil, down 6 per cent so far in the second half of this year, was weakened by lower prices of vegetable oils across the market and bearish technicals, traders said.
The benchmark December contract on the Bursa Malaysia Derivative Exchange fell as much as RM104 to RM2,082 before settling down RM83 at RM2,103.
Prominent industry analyst Dorab Mistry at a vegetable oils conference in India said palm oil prices needed to fall to RM1,900 to stimulate demand and keep stocks under control.
“Its a day for numbers. Mistry’s magic number is RM1,900 and the market has slipped below the 200-moving average and the 10-day moving average. So the bearish momentum is there,” one dealer with a local commodities brokerage said.
Palm oil fell to its lowest since Sept. 14, going past its 200-day moving average, which stood at RM2,142 a tonne and RM2,150 for the 10-day average, which traders said suggested further long- and short-term declines.
Part of the declines could be attributed to fears of weak exports although some dealers expect big buyers like China and India to resume buying while Middle Eastern countries are likely to restock after Ramadan.
Bids for crude palm oil for September and October delivery were seen at RM2,170 while offers stood at RM2,190 for the southern region. Trades were done at RM2,190 a tonne. Source : Business Times]]>