SINGAPORE: Since it has remained stable around a support level of 3,494 ringgit However, Palm Oil Prices may surge a range of 3,690-3,773 ringgit per tonne.
A temporary bottom has formed around the contract, which failed twice to break 3,494 ringgit.
After falling to a five-month low of below MYR 3,600 last week, Malaysian palm oil futures rose for a second session on Tuesday to over MYR 3,650 per tonne.
According to data compiled by cargo surveyors, exports of Malaysian palm oil production rose between 11.4% and 19.8% month-over-month during the first 25 days of March, supporting the upturn.
While Abdul Hameed, director of sales at Manzoor Trading in Pakistan, stated. However, he asserts that mixed fundamentals may cause volatility in the market this week. He points out that the financial market, including commodities, has been impact by the banking turmoil in the United States and Europe, despite the fact that there is increased demand as the Ramadan fasting month begins.
In the meantime, to support domestic demand, Indonesia, a leading producer, has may restrict the exports until the end of Ramadan and the Eid celebration. At the same time, may Jakarta has made biodiesel with more palm oil prices mandatory, which makes blenders more popular and makes cooking oil less available.
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In addition, production in Malaysia and Indonesia may be affected by the El Nino weather pattern, which is anticipates to emerge in the middle of 2023.
While the stabilization suggests that wave c, which narrowly missed its goal of 3,420 ringgit, has been completed.
A break below 3,569 ringgit could lead to a fall to 3,494 ringgit as immediate support.