Palm Oil Declines From Three-Month High as Gains Seen Overdone
Palm oil fell for the first time in four days on speculation that a rally to the highest level in almost three months was overdone.
The contract for September delivery dropped as much as 0.8 percent to 2,449 ringgit ($775) a metric ton on the Bursa Malaysia Derivatives and ended the morning session at 2,454 ringgit. Futures advanced yesterday to 2,468 ringgit, the highest price at close for the most active contract since March 22. Palm for local physical delivery in July was at 2,460 ringgit yesterday, according to data compiled by Bloomberg.
Exports from Malaysia jumped 18 percent to 709,860 tons in the first 15 days of this month, Intertek said June 15. Shipments gained 16 percent to 707,148 tons in the same period, with exports to Pakistan expanding almost 18 times to 107,650 tons from a month earlier, SGS (Malaysia) Sdn. said on June 17. The two surveyors are scheduled to release estimates for the first 20 days of the month tomorrow.
Traders are waiting “to see if the exports momentum will be maintained,” said Vijay Mehta, a director of Commodity Links Pte. in Singapore. “Fundamentally, the market is well-supported. The lower side is also limited because at the lower levels, a lot of support is coming.”
Soybean oil for December delivery gained 0.5 percent to 47.81 cents a pound on the Chicago Board of Trade, while soybeans for delivery in November were little changed at $12.895 a bushel. Refined palm oil for January delivery declined 0.9 percent to 6,218 yuan ($1,014) a ton on the Dalian Commodity Exchange, while soybean oil for delivery in the same month fell 0.4 percent to 7,658 yuan.
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