Palm oil fell after climbing for four days to the highest level since July 2022 as some traders trimmed their exposure to an overbought market and booked profits.
The tropical oil’s relative strength index crossed 70, a technical level that indicated that prices had risen too far, too fast and were prone to a selloff. An analyst said Palm’s recent rally prompted some traders to sell their trading positions and lock in profits. Still, the market’s medium-term outlook stayed bullish. There are concerns that production in Indonesia and Malaysia, the world’s top growers, could fall due to ageing trees and weather-related disruptions. If fundamentals, such as steady demand and limited supply, remain supportive, the market could resume its uptrend soon, he said. (Source: Bloomberg)
