Malaysian palm oil closes lower on November 11 in thin trade
November 11 Malaysian palm oil daily review: thin trade, closing lower
(Agricultural Wealth Network) On November 11, crude palm oil futures on the Bursa Malaysia Derivatives (BMD) closed lower amid sluggish trading. Rising palm oil production and stocks continued to weigh on market sentiment. However, crude palm oil prices performed better than expected, which led some traders to question the extent of future declines.
The benchmark January crude palm oil contract closed 7 ringgit lower at 2,235 ringgit/tonne; the February contract fell 5 ringgit to close at 2,255 ringgit/tonne.
Analysts said October palm oil stock levels were far above market expectations of 1.75-1.8 million tonnes. But on November 10 palm oil prices fell only 24 ringgit. Palm oil prices did not drop sharply and trading was very thin, so many people are questioning how far palm oil prices will fall in the coming days.
Traders said it looks like the palm oil market is already very balanced, with neither bulls nor bears willing to take excessive positions, and they do not need to liquidate.
Sluggish trading and a lack of bulls in the palm oil market indicate that the market is unclear about the future direction of the broader market.
A Kuala Lumpur analyst said traders are simply unwilling to push prices sharply higher or lower at present, so palm oil prices are just oscillating in a narrow range.
The Malaysian Palm Oil Board said October Malaysian palm oil production rose 27% from the previous month to 1.99 million tonnes, setting a record high. October palm oil stocks rose 25%, hitting a ten-month high of 1.98 million tonnes.
On November 11, palm oil market volume was estimated at 5,092 lots, compared with 11,963 lots on November 10.
The benchmark January crude palm oil contract closed 7 ringgit lower at 2,235 ringgit/tonne; the February contract fell 5 ringgit to close at 2,255 ringgit/tonne.
Analysts said October palm oil stock levels were far above market expectations of 1.75-1.8 million tonnes. But on November 10 palm oil prices fell only 24 ringgit. Palm oil prices did not drop sharply and trading was very thin, so many people are questioning how far palm oil prices will fall in the coming days.
Traders said it looks like the palm oil market is already very balanced, with neither bulls nor bears willing to take excessive positions, and they do not need to liquidate.
Sluggish trading and a lack of bulls in the palm oil market indicate that the market is unclear about the future direction of the broader market.
A Kuala Lumpur analyst said traders are simply unwilling to push prices sharply higher or lower at present, so palm oil prices are just oscillating in a narrow range.
The Malaysian Palm Oil Board said October Malaysian palm oil production rose 27% from the previous month to 1.99 million tonnes, setting a record high. October palm oil stocks rose 25%, hitting a ten-month high of 1.98 million tonnes.
On November 11, palm oil market volume was estimated at 5,092 lots, compared with 11,963 lots on November 10.