MALAYSIAN
palm oil extended losses yesterday and China’s soyoil market tumbled
from two-year highs as a stronger dollar made commodities priced in the
currency expensive and unattractive as an inflation hedge.
The
dollar rose broadly yesterday as speculation the US Federal Reserve
would take a gradualist approach to more quantitative easing next week
prompted players to liquidate some short dollar positions.
Benchmark
January 2011 palm oil futures on the Bursa Malaysia Derivatives
Exchange ended 0.5 per cent lower at RM3,037 (US$981.3), extending
losses to a second day after the market hit a two-year high on Monday.
Traded volume was heavy at 19,420 lots of 25 tonnes each changing hands, almost double from the usual 10,000 lots.
“Palm oil followed a correction of China’s soyoil and profit taking on a stronger dollar,” said a trader in Kuala Lumpur.
But
traders expect resilient palm oil export when cargo surveyors issue
September data next week, which may have limited the losses in the
Malaysian benchmark.
Reuters technical analyst Wang Tao expects
Malaysian palm oil to maintain at RM3,194 per tonne based on its wave
pattern and a Fibonacci projection analysis.
China soyoil futures fell yesterday, tracking Chicago soybean prices that fell back from 14-month highs during Asian trade.
The
most active September soyoil contract on China’s Dalian Commodity
Exchange tumbled 2.8 per cent to 9,440 yuan per tonne on profit taking
after climbing to its fresh two-year highs of 9,580 yuan earlier in the
session.
Source : Business Times
