BMD Market Re-cap:
– BMD FCPO futures retreated on Tuesday as traders decided to take profits following a recent rally. The fall was affected by predictions of a recovery in Malaysian production as well as the weakness noticed in soybean oil.

– Traders stay vigilant over the market due to the uncertainty surrounding the conflict in the Black Sea region. Palm oil may struggle to maintain its price above RM4,000 unless it receives support from other oils.

– Cargo surveyors Amspec and ITS reported 1-25th July export rose 10.8% and 17.8% compare to same period in June.

– Analyst projected India’s July edible oil imports to reach a record 1.86 million metric tonnes, roughly 60% higher than typical, as refiners increased purchases to build inventories for festivals amid concern over supply disruption from the Black Sea.

World Oil and Grains
– CBOT Soybean futures fell on Tuesday, owing to technical selling and raising concerns that the hot weather in the U.S. Midwest may be fleeting.

– Traders became cautious as the market retreated from its highs, with Russia’s apparent slowdown in port attacks contributing to this sentiment.

– On late Monday, USDA reported 54% of the US soybean crop was graded as good to excellent, a little decline from the previous week’s assessment of 55%.

Market Outlook
– Palm oil paused its rally yesterday, declining RM98 to close at MYR4,066. The current price movement shows a healthy retracement from the upward trend.

– Today, there might be a test to maintain a position above RM4,000, indicating a shift towards post-rally consolidation. Traders will be closely monitoring the developments in the Russia-Ukraine conflict and the upcoming monetary policy decision from the U.S. central bank scheduled for this Wednesday.

Opening range: 4100 to 4110
Projected range of the day: 4000 to 4200

Support 3850 Next 3800
Resistance 4350 Next 4500