Malaysian palm oil prices fell slightly in early trade on Wednesday, following three consecutive sessions of gains.
The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.2%, to 4,413 ringgit ($1,043.51) a tonne during early trade.
The contract gained more than 7% over the last three days.
Palm market had “profit-taking in mind” as the current rally is heading for its sixth consecutive weekly gain, a trader in Kuala Lumpur said.
In related oils, Dalian’s most-active soyoil contract DBYcv1 rose 0.44% and its palm oil contract DCPcv1 was up 0.31% in early trade. Meanwhile, soyoil prices on the Chicago Board of Trade BOcv1rose 0.45%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may revisit its May 12 high of 4,525 ringgit per tonne, as it is about to break a resistance at 4,450 ringgit, said Reuters technicals analyst Wang Tao. TECH/C
MARKET NEWS
* Asian shares stayed stuck at seven-month lows on Wednesday, as markets continued to digest a storm in Chinese equity markets, while the dollar rested with traders reluctant to place large bets ahead of the outcome of the Federal Reserve meeting.
* Oil prices climbed on Wednesday after industry data showed U.S. crude and product inventories fell more sharply than expected last week, reinforcing expectations that demand will outstrip supply growth even amid a surge in COVID-19 cases.
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Ramakrishnan M.)