Crude palm oil futures on Malaysia’s derivatives exchange ended up Wednesday in holiday-thinned trade amid continued worries about South America’s soybean crop.
However, gains were capped by concerns that Greece could head toward a disorderly default as debt restructuring talks continue with no sign of a resolution.
The benchmark April contract on the Bursa Malaysia Derivatives exchange ended 0.1% higher at MYR3,169 a metric ton after moving in a MYR3,162-MYR3,190 range.
“Markets are still driven by developments in Europe, but worries about the soy crop in South America will underpin the market and prevent sharp declines,” a trading executive at a Kuala Lumpur-based brokerage said, adding the declines in crop estimates for top soybean producers Argentina and Brazil will continue to fuel bullish momentum in the global vegoil market in the next few weeks.
While the palm oil market is biased to the upside, some profit taking is expected over the next two sessions as export demand for the cooking oil may remain weak as markets and businesses in top vegoil consumer China are still closed for the Lunar New Year holiday.
Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., issue Jan. 1-25 shipment data on Thursday.
In the cash market, refined palm olein for April/May/June shipments were traded at $1,0665/ton, free on board Malaysian ports, a physical market broker in Singapore said.
Cash CPO for prompt shipment was offered MYR20 higher at MYR3,190/ton.
Open interest on the BMD was 109,854 lots, versus 111,279 lots Friday. One lot is equivalent to 25 tons.
A total of 9,265 lots of CPO were traded versus 13,053 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Feb'12 3,172 3,163 +9 3,185 3,171 Mar'12 3,171 3,162 +9 3,192 3,167 Apr'12 3,169 3,165 +4 3,190 3,162 May'12 3,158 3,152 +6 3,186 3,158
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
January 25, 2012 06:24 ET (11:24 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.
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