MUMBAI: Palm oil climbed for the fourth day as this month’s 10% decline lured buying from investors and importers of the tropical oil used in food to fuel.
The August-delivery contract gained as much as 0.9% to 3,126 ringgit or US$1,001) a metric ton on the Malaysia Derivatives Exchange and traded at 3,109 ringgit by the midday break at 12:30 p.m. Singapore time. Futures slid 5.5% last week, the most since the five days ended November 25.
Palm oil’s so-called 14-day relative-strength index was at 28.305 today, below the level of 30 that may indicate a rebound.
“People are playing the technical game to consolidate in the short term as they don’t want to take any positions until they see clear news from the euro side and the coming production in Malaysia,” said Chandran Sinnasamy, trading head at LT International Futures (M) Sdn in Kuala Lumpur.
Investors are still not willing to buy palm oil before the Greek elections and seeing their potential impact on the euro, he said.
Greece has set June 17 as the date for new general elections after polls on May 6 produced a hung Parliament, with parties unable to agree on forming a coalition government.
Palm oil for September delivery slid 0.2% to 8,062 yuan or US$1,275 a ton on the Dalian Commodity Exchange. (Bloomberg/T03)