Crude palm oil futures on Bursa Malaysia Derivatives ended lower Friday due to a broad asset selloff on the back of rising concerns about global economic growth.
But losses were limited toward the end of trade as the declines encouraged bargain-hunting, trade participants said.
Benchmark December contract ended at MYR2,992 a metric ton, a decline of 0.6% from Thursday’s settlement. The price earlier fell as much as 1.9% to MYR2,951/ton, the lowest since Aug. 26., after soyoil futures on the Dalian Commodity Exchange fell more than 3% during Asian trade.
The market remains vulnerable to further declines next week, due to ample supply and persistent worries about the health of the global economy, a trading executive at Kuala Lumpur-based OSK Investment Bank said.
A 5%-10% rise in output could easily push end-September stocks toward the psychological level of two million tons if overall exports remain weak, even with the buying interest from India, a Singapore-based analyst said.
Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., will issue export estimates for the Sept. 1-25 period on Monday.
Forecasts of higher production in Malaysia and likely bearish vegoil price outlooks from an industry conference this weekend may spur more selloffs next week.
In the cash market, refined palm olein for October was offered $35 lower at $1,040/ton, while cash CPO for prompt shipment was offered MYR65 lower at MYR3,015/ton.
Traded volume on the BMD was 23,550 lots compared with 21,958 lots Thursday. One lot equals 25 tons.
Open interest was 135,326 contracts compared with 136,615 contracts Thursday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1030 GMT: Month Close Previous Change High Low Oct'11 3,005 3,023 -18 3,008 2,977 Nov'11 2,989 3,011 -22 2,995 2,954 Dec'11 2,992 3,009 -17 2,994 2,951 Jan'12 2,995 3,016 -21 2,994 2,953
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
September 23, 2011 06:44 ET (10:44 GMT)
Copyright (c) 2011 Dow Jones & Company, Inc.
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