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Analysts say China's 25% tariff on US soybeans is positive for crude palm oil as palm competes with soyoil in China and India. Bloomberg reported CBOT soybean futures fell as much as 5.3% on the tariff news, while wheat and corn also slid.
Bursa June palm futures closed 18 ringgit higher at 2,454.
China's tariff makes US soybeans and soyoil costlier, which should shift Chinese demand toward palm oil and widen the palm-soy spread, while US soy complex prices fall.
thestar.com.myHANIM ADNANApr 4, 2018After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 224 past bullish trade events, Soybean Oil moved a median +0.4% over 5 sessions (54% higher; middle half -1.5% to +2.1%), and -0.5% over 20.
After 133 past bullish trade events, Palm Oil moved a median +0.7% over 5 sessions (64% higher; middle half -0.8% to +2.3%), and +1.7% over 20.
After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% 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.
