Crude Palm Oil Slips On Profit-Taking, US, Europe Worries

CPO futures ended lower on previous Friday but manage to finished the week positively. Tracking the performance of Soya oil, palm oil market took a dip on morning and afternoon session but the slump were limited by positive export figures announce by cargo surveyors ITS and SGS. 

ITS reported that Malaysia July 1-15 Palm Oil Exports 752,047 Tons, Up 12% On Month while SGS announced July 1-15 Palm Oil Exports 731,842 Tons, +4.6%. Market does not re-act to these news until the late afternoon session where the benchmark Sept start to bounce back after it has fell down to 3,115 level. The benchmark Sept saw a swift rebound right after it hit that low to 3,138 as Buyers step in to accumulate Long position due to temporary oversold condition. Palm oil market is likely to recover further as volume rose steadily when the market goes up, a basic condition to identify genuine market movement and to filter out false direction. 

Technically, the benchmark Sept had breakout from a congestion period judging from daily chart, this event might caused the market to have a major rebound. The highlighted eclipse plus green horizontal line is likely serve a base or major support for the time being.  

Crude palm oil futures on Malaysia’s derivatives exchange fell Monday, with profit-taking kicking in after earlier gains, as the market took cues from the weakness in other commodities.

The new benchmark October CPO on the Bursa Malaysia Derivatives ended 1.2% lower at MYR3,078 a metric ton, after trading between MYR3,068 and MYR3,140/ton. Sept contract closed at 3085 down 31.

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