Commodity outlook: Edible oil down but not out

Technically, palm looks vulnerable in the short-term and could revisit recent lows, but subsequent to that a strong rebound from there towards 2,175-2,200 MYR/ton levels is anticipated

Edible oil prices have been declining due to rising stocks and poor demand. Rising output in India, the largest consumer, has added to the weak sentiment. Accordingly, domestic crude-palm-oil prices also declined, by around 8 percent. The January price gains were on expectations that palm-oil output in Malaysia would shrink due to seasonally lower yields and thus stockpiles might be reduced to some extent. But, stocks haven’t fallen as much as expected. Exports, however, declined around 21 percent in February while output contracted just 11percent. Thus, inventories continue above the 3 million-tonne mark.

Indonesia's output is seen increasing 7