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Palm Oil Prices May Test Support At 3,736 Ringgit

COMMODITIES(B-Trams):

PAKISTAN: A break below 3,736 ringgit per tonne could open the way to 3,690 ringgit for palm oil prices, which may reach a support at that price. Tuesday’s  rebound proved insufficient to reverse the downward trend.

It is anticipates that another round of deep fall will follow this bounce. This low may be revisited on Wednesday or Thursday because so much of the rise from 3,721 ringgit has been reversed.

Also Read : Malaysian Palm Oil Remained Under Pressure; Analyst Abdul Hameed

While Manzoor Trading Co. sales manager and leading analyst Abdul Hameed stated:  As previously stated, palm fundamentals from Malaysia and Indonesia are robust, but physiological sentiments are declining.

Many sellers in the market, including those from Brazil Soya, EU Mustard, and Australia’s Mustard, are competing with palm oil for the same price.

However, it is also putting pressure on palm prices, particularly mustard, which are currently lower than palm oil prices, dragging demand and stifling traders’ interest, he stated:

Also Read : CBOT Soybeans Futures Slumps 3 Months Low To $14.67 Per Bushel Level

In the meantime, holiday demand is not increasing, and the banking crisis is also not supporting the market.

The contract may increase its loss to 3,420-3,494 ringgit if it closes below this level. A break above resistance at 3,810 ringgit could propel the price into the 3,856-3,885 ringgit range.

The contract has breached a support level of 3,859 ringgit and a rising trendline on the daily chart. The subsequent support of 3,708 ringgit may be tested.