Palm Oil Prices Likely to Remain Lacklustre for the Rest of the Year

KUALA LUMPUR, Sept 11 (Bernama) — Palm oil prices are likely to remain lacklustre for the rest of the year due to the diminishing weather threat and strong output in Indonesia, according to a research house.

The agriculture commodities have been very weak compared to industrial commodities, particularly those for which the supply has not been adversely affected by weather, OSK Research said.

” We do not think palm oil will escape the broad price weakness in agriculture commodities,” it said in its research note.

OSK Research said the year to date average palm oil price of RM2,251 was comfortably above its price assumption of RM1,900 per tonne.

On the technical view, an immediate resistance lies at the RM2,234 per tonne, while further resistance levels were detected at RM2,402 per tonne and RM2,521 per tonne, the research house said.

It said from the current level there was an immediate strong support at the mid-term uptrend line which is currently around RM2,000 and RM2,100 per tonne.

” The next support is seen at RM1,964 per tonne,” it added.

Source : BERNAMA

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