tracking volatile crude oil and equity markets, on signs China’s
economic growth was slowing.
Investors gave stocks and
commodities a wide berth yesterday on mounting worries about the
strength of the global economic recovery after manufacturing data showed
China’s rapid growth was slowing.
The China Federation of
Logistics and Purchasing (CFLP) showed China’s official purchasing
managers’ index (PMI) fell to 52.1 in June compared to 53.9 in May
“The market is still very weak and prices are temporarily moving
sideways to downward,” said a trader with Kuala Lumpur based-foreign
Benchmark September crude palm oil contract on Bursa
Malaysia Derivatives Exchange fell RM27 at RM2,346 a tonne. The same
contract hit a lowest point since November 17, 2009 at RM2,338 the
Overall traded volume stood at 13,224 lots of 25
tonnes, well above the usual 10,000 lots.
Wang Tao, a Reuters
market analyst for commodities and energy, sees Malaysian palm oil to
come down to RM2,338, a low touched on Wednesday, as it completed a
pullback towards a resistance at RM2,375 per tonne.
below US$75 a barrel in Asian hours, beginning the second half of the
year on a weak note after falling nearly 5 per cent in the first half,
as signs of slowing economic growth in China fuelled energy demand
doubts. Yesterday, other vegetable oils followed the weaker crude.
US soyoil for July delivery and most-active January soyoil contract on
China’s Dalian Commodity Exchange fell 0.7 per cent.