Kok slams EU trade war on palm oil
BRUSSELS: Prime Industries Minister Teresa Kok has accused the European Union of launching a trade war as the EU plans to phase out the use of palm oil in biofuels by 2030.
She who is currently on a month long trip to Europe has threatened retaliatory action at the World Trade Organisation.
“We see this as a form of trade war by the EU against Malaysia and Indonesia as palm oil producing countries,” she said.
“We will definitely look at what the kinds of trade items that we import from Europe are and we will be looking at other countries (to source them).”
She also reiterated Prime Minister Tun Dr Mahathir Mohamad’s threat to give preference to China instead of European nations in the purchase of fighter jets if EU countries continued its trade over over palm oil.
“Our prime minister says he likes the fighter jets of China, but our defence minister two weeks ago had gone to Russia to look at their weapons and planes,” she said.
“And Russia is willing to buy more palm oil from Malaysia. So we’re looking at all these options.”
Palm oil prices expected to bounce
Palm oil production has been undergoing a down phase due to a drop in prices per tonne.
Reuters‘ market analyst for commodities and energy technicals, Wang Tao however is optimistic about palm oil prices bouncing back to RM2,034.
“Palm oil seems to have found a support range of RM1,940-1,967 per tonne, it may bounce towards RM2,034.”
“The range is formed by the Nov 27, 2018 low and the 123.6% projection level on a downtrend from RM2,896. The bounce from this low was triggered by the support at RM1,967. This bounce was very strong, lasting a few months.”
“Another bounce may be triggered by the support at RM1,967 or RM1,940, as signalled by an abandoned baby forming on May 6. At least, the contract may hover above the support range for a few days.”
“On the hourly chart, a projection analysis reveals a key support at RM1,967, the 261.8% level of a downward wave from RM2,218, which works with the support zone on the daily chart to stop the fall. A bounce is due.”
“A break below RM1,967 may cause a loss to RM1,930.”
