Palm oil advanced for a third day to the highest intraday level since June 2022 on growing supply concerns and an overnight surge in prices of rival soybean oil. The tropical oil climbed as much as 3.1% in Kuala Lumpur on Friday. The world’s most-consumed cooking oil partly tracked a jump of 4.3% in soyoil, palm’s closest competitor in food and fuel markets, on the Chicago Board of Trade on Thursday. A tight supply outlook is supporting the market, said an analyst. The sector has also been grappling with poor output, mostly due to aging trees in top growers. Although fundamental factors are likely to keep the palm oil market elevated in the medium term, there are concerns that the commodity could witness in a technical selloff in the coming weeks. Its relative strength index hovered above
70, a level that indicated that prices had risen too far, too fast. Softening demand from India, the world’s biggest vegetable oil importer, after the end of the festival season in early November could also prompt some investors to book profits in the near term.(Source: Bloomberg)
