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  • News Desk
  • Aug 27th, 2004
  • Comments Off on Malaysian palm oil tops 1,500 ringgit, near two-month high
Malaysian crude palm oil futures rallied to their highest in nearly two months on Thursday after breaching the key barrier of 1,500 ringgit a tonne on firmer physical prices and gains in rival US soyaoil.

The benchmark November contract ended up 1.5 percent, or 23 ringgit, at 1,513 ringgit ($398.16) after touching 1,530 the highest since July 2.

"Refiners are covering for prompt oil in the cash market, and this gave players an excuse to further push up futures prices. We had expected resistance at the 1,500 level," said a trader.

He said refiners were seeking crude palm oil for August/first-half September delivery to meet export commitments.

The third-month contract has risen 6.8 percent this week, mainly on the strength of soyaoil.

Overall volume swelled to 7,558 lots from Wednesday's 4,633.

On the physical market, August/September saw buyers/sellers at 1,565/1,570 ringgit a tonne in Malaysia's southern and central regions, compared with Wednesday's close of 1,550/1,555.

Trades were reported at 1,550-1,570 ringgit. Chicago Board of Trade soyaoil futures rose 0.05 cent to 0.27 cent per lb on Wednesday, with September up 0.27 cent at 25.19 and December up 0.24 cent at 23.76 cents.

Concerns about possible declines in US oil yields this year and in Canada's canola crop following cool August temperatures underpinned CBOT soyaoil futures, brokers said.

Traders said soyaoil futures were likely to dictate direction of palm oil futures until next on Wednesday's release of export figures for the whole of August.

Cargo surveyor, Society Generale Surveillance (SGS), said on Wednesday that Malaysia exported 931,384 tonnes of oil palm products in August 1-25, up a lower-than-expected 4.8 percent from the 889,068 tonnes shipped in July 1-25.

PALM OIL FUTURES:

August (south): 1570.

Open/High/Low: 1489/1530/1484.

Previous closes: 1555.

PALM OIL PHYSICALS:

November (3rd month): 1513.

Previous settlement: 1490.

FUTURES:

Third-month November up 23 ringgit to 1,513 ringgit ($398.16) a tonne.

PHYSICALS:

August offer quoted 15 ringgit higher.

Copyright Reuters, 2004


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