Chart of the day: Palm oil gets boost from record El Nino
While growth concerns and developments in the US dollar have set the scene for a roller-coaster ride in the third quarter, agricultural commodities may provide a welcome break. In the case of Malaysian crude palm oil, expectations for a record El Nino this year have provided a sentiment tailwind in recent weeks. In the near term, optimism looks stretched, based on sentiment barometer indicators from Absolute Strategy Research. After a strong rally off lows in late August, resistance may emerge at 2,400 ringgit (HK$4,160) per tonne. That said, any pullback may prove short-lived amid El Nino concerns.