Palm Oil Continues to Move Toward Resistance

The current weather environment which includes a strengthening El Nino combined with a weak ringgit continues to support palm oil prices in the short term but an overhang of inventories will cap price gains. Production is at the end of the peak cycle and this will push the ending stocks up further, however, extremely dry weather in key growing areas of Sumatra and Kalimatan could provide support to front-month prices.

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