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  • Feb 19th, 2005
  • Comments Off on Malaysian palm oil higher on export talks
Malaysian crude palm oil futures rose 1.3 percent on Friday, as talk of stronger exports for the first 20 days of February prompted further short-covering, dealers said. Gains in rival US soyaoil also lifted palm oil prices. The benchmark third-month crude palm oil contract on Bursar Malaysia Derivatives, May, ended up 17 ringgit at 1,342 ringgit ($353.16) a tonne. Other traded contracts rose 13 to 19 ringgits. Overall volume increased to 6,027 lots of 25 tonnes each, from Thursday's 4,756 lots.

"The market is talking about exports of between 740,000 and 780,000 tonnes for February 1-20, and this was the reason behind the afternoon gains," said a trader.

Exports data for the period is due on Monday.

Exports were about 645,000 tonnes in the first 20 days of January.

Society Generale de Surveillance, a leading surveyor of Malaysian palm oil cargoes, had estimated exports for February 1 to 15 at 544,861 tonnes, up 12.6 percent from a month.

Soyaoil futures on the Chicago Board of Trade closed higher on Thursday, supported by a rally in soyabean to a near two-month high on renewed worries that dry weather in parts of South America was cutting soyabean yields.

March soyaoil settled 0.26 cent up at 19.82 cents per lb, with the back months up 0.13 to 0.23 cent. Soyaoil and palm oil compete for similar export destinations and their prices often move in step.

In physical crude palm oil, the February contract saw bids at 1,340 ringgit a tonne and offers at 1,350 ringgit in Malaysia's southern and central regions. Bids/offers closed at 1,330/1,335 ringgit on Thursday.

Trades were reported at 1,325-1,340 ringgit in both regions.

PALM OIL FUTURES:

February (south): 1350

Open/High/Low: 1326/1343/1321

Previous closes: 1335

PALM OIL PHYSICALS:

May (third month): 1342

Previous settlement: 1325

FUTURES: Benchmark third-month May up 17 ringgit at 1,342 ringgit ($353.16) a tonne.

PHYSICALS: February offers up 15 ringgit a tonne.

Copyright Reuters, 2005


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