Pepper made its first ever gain since Monday while respecting the resistance of Rs30,300- 30,500. Volatility continues to trouble Mentha oil prices as prices find stiff resistance above Rs1,600.
BMD CPO futures fell during the previous session pressured by a dip in Crude Oil and a stronger MYR/USD, which made CPO a more expensive feedstock for Malaysian refiners. Palm oil has declined 5% since the beginning of the year and could fall further in coming weeks if demand remains tepid.
Trading executives have said Malaysian exports are weakening as buyers shift orders to top producer Indonesia due to lower export taxes.
Indonesia reduced its export tax on refined palm products last August, which allowed its refiners to sell products at a steep discount compared with Malaysia. But palm oil’s downside is likely limited at least for the rest of the week, as traders may square off positions ahead of the long weekend on Friday.
Expectations for Malaysian output to fall as much as 12% in January may keep stocks unchanged from December’s level of 2.03mn tons is acting as a lateral support.
US soy complex futures ended modestly higher, trading in tandem with movement in the US dollar. Prices traded in both sides of unchanged with USD fluctuations in focus as uncertainty about South American output offset fundamental pressure from sluggish export demand.
Without a fundamental event to direct prices, participants eyed outside markets, playing more of a waiting game in the absence of directives to break futures out of their recent trading range.
NCDEX and MCX edible oil counters extended their southward journey making fresh multi month lows depressed by a stronger rupee.