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Analysts said crude palm oil prices should stay above RM3,400 a tonne for the rest of the year. The forecast cites lower US soybean output from the USDA acreage report and El Niño weather affecting oilseed and oil palm crops.
Palm reached its highest level since March on July 3.
Reduced US soybean supply and El Niño dryness both tighten vegetable oil supply, which keeps palm prices firm. A weaker ringgit adds support in ringgit terms.
theedgemalaysia.comJul 3, 2023After 149 past bullish report events, Palm Oil moved a median +0.5% over 5 sessions (57% higher; middle half -1.1% to +1.8%), and +0.8% over 20.
After 747 past bullish report events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.1%), and +0.8% over 20.
After 296 past bullish report events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.8% to +2.0%), and -0.5% 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.
Analysts tie palm's July 3 high to lower US soybean output and El Niño risk, reinforcing sentiment, but it is commentary rather than the trigger.
