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Palm oil futures for August fell 1.1% to RM4,240 a tonne, the lowest since May 11, after the market reopened from the Aidilfitri holiday. Traders cited weakening demand from India, the top buyer, where lockdowns to fight a Covid-19 outbreak have closed restaurants that use palm oil.
Some traders also took profits on long positions held before the holiday.
Lockdown-driven loss of restaurant demand in India weighs on palm oil, which is used mainly in food service, and shifts Indian buying toward sunflower and soybean oil. Lower near-term demand points to softer palm oil prices, although strong soyoil prices offer some support.
themalaysianreserve.comZukriMay 18, 2021After 158 past bearish trade events, Palm Oil moved a median +0.0% over 5 sessions (51% higher; middle half -1.3% to +0.8%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
