Bearishness engulfs the palm oil market – OCBC
|Palm prices fell below the critical support of 2000 MYR/mt last Thursday, widening the soyoil-palm oil spread to its largest since Oct 2019, Howie Lee from OCBC Bank briefs.
Key quotes
“With 2000 MYR/mt level now broken, expect prices to head towards 1800 MYR/mt – the cost of production for small shareholders in Indonesia.”
“We think given the widening soy oil-palm oil spread and the return of India and China for palm imports and an impending drought in Indonesia, prices should not stay below 2000 MYR/mt beyond June, if not this month.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.