November 11 Malaysian Palm Oil Daily Review: Trading light, closing down

(agricultural get Rich Network) November 11, Malaysia Derivatives Exchange (BMD) crude palm oil futures market closed down, the market trading was sluggish. The increase in palm oil production and stocks continues to dampen market sentiment. But crude palm oil prices performed better than expected, leading some traders to question the extent of future declines.

The benchmark January crude palm oil contract closed 7 ringgit lower at 2235 ringgit / ton, while the February contract fell 5 ringgit to 2255 ringgit / tonne.

Analysts said the level of palm oil stocks in October was much higher than the market expected of 175-1.8 million tons. But the price of palm oil fell only 24 ringgit on November 10th. Palm oil prices have not fallen sharply, and trading in the market is so light that many people are questioning the decline in palm oil prices in the next few days.

Traders say it looks like the palm oil market is well balanced, with both bulls and short positions reluctant to operate too much, and they do not need to close their positions.

Palm oil market trading is weak, lack of bulls, which shows that the market is not clear about the direction of the market in the future.

Analysts in Kuala Lumpur said that at present, traders are just unwilling to push prices up or down, so palm oil prices are just cowskin oscillations.

Malaysia's palm oil bureau said Malaysian palm oil production rose 27% in October from the previous month to 1.99 million tons, an all-time high. Palm oil stocks rose 25% in October to a 10-month high of 1.98 million tons.

Volume in the palm oil market was estimated at 5092 lots on Nov. 11, compared with 11963 lots on Nov. 10.