stronger ringgit currency offset earlier crude oil-driven gains.
Commodities
across the board were up on the weaker US dollar but palm oil erased
its gains made in the morning session as the Malaysian currency hit a
21-month high, chewing into refiner margins.
“Crude oil’s
18-month high has been forgotten. Traders appear to be veering towards
the support levels of RM2,500 rather than aiming for resistance level of
RM2,600,” said a Malaysian trader.
The benchmark June crude palm oil contract on the Bursa Malaysia
Derivatives Exchange fell RM29 to settle at RM2,530 after rising as
high as RM 2,588.
Traded volume rose to 17,008 lots of 25 tonnes
each from the usual 10,000 lots, suggesting that traders were booking
profits.
Malaysian ringgit surged nearly half a per cent to a
21-month high of 3.2340, riding on global inflows to Asia as it catches
up with other bullish Asian peers.
The stronger ringgit usually
eats into refiner margins, as crude palm oil feedstock for refined
products is priced in the Malaysian currency.
Traders said
Chinese buying was very limited because of a public holiday in the
world’s second largest vegetable oil consumer.
Vegetable oil
markets are also eyeing developments from a brewing trade dispute
between China and Argentina.
Source : Business Times
