KUALA LUMPUR: The recent palm oil rally staged a pullback, with the April contract falling 2.95% at midday on Wednesday, Feb 16 from the previous close of RM3,887.
The contract for crude palm oil fell RM115 to RM3,770 per tonne.
Credit Suisse Research said in a recent report it believes the current palm oil rally could be closer to its end.
During the commodity rally of 2008, palm oil prices remained above RM4,000 for just two days. Palm oil prices at such high levels could result in a slowdown in demand, as affordability in poorer countries will be affected adversely.
'In addition, speculative net long positions for soy and corn have continued to move higher and are well above 2008 levels. Hence, this is vulnerable to profit-taking,' it said.
The contract for crude palm oil fell RM115 to RM3,770 per tonne.
Credit Suisse Research said in a recent report it believes the current palm oil rally could be closer to its end.
During the commodity rally of 2008, palm oil prices remained above RM4,000 for just two days. Palm oil prices at such high levels could result in a slowdown in demand, as affordability in poorer countries will be affected adversely.
'In addition, speculative net long positions for soy and corn have continued to move higher and are well above 2008 levels. Hence, this is vulnerable to profit-taking,' it said.
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