Crude palm oil futures on Malaysia’s derivatives exchange ended just higher Friday due to speculative buying, but a weak demand outlook limited the upside.
The benchmark April contract on the Bursa Malaysia Derivatives exchange ended 0.1% higher at MYR3,135 a metric ton after moving in a range of MYR3,123-MYR3,146/ton. Palm oil is headed for a weekly decline of 0.9% on demand fears and concerns about the euro-zone debt crisis.
March soyoil on the Chicago Board of Trade fell 0.2% to 51.84 cents a pound at the end of trade on the BMD.
"The Jan. 1-25 export estimates by cargo surveyors Intertek and SGS were sharply lower, which won't do much to trim Malaysia's high palm oil stock levels," a Kuala Lumpur-based trading executive said, pegging end-January inventory at 2.03 million tons, unchanged from December.
On Thursday, cargo surveyors Intertek Agri Services said Jan. 1-25 exports fell 17% from the previous month to 981,275 tons, while surveyor SGS (Malaysia) Bhd. put exports at 947,401, down 20%.
"The market may ease further next week as shipments for the whole month are likely to remain weak at around 1.30 million tons," a Singapore-based broker said.
Malaysia exported nearly 1.50 million tons of palm oil in December.
Malaysia's weather bureau Friday warned of heavy rain this weekend in Sabah state, which produces around 30% of the country's crude palm oil.
Open interest on the BMD was 108,690 lots, versus 107,172 lots Thursday. One lot is equivalent to 25 tons.
A total of 16,381 lots of CPO were traded versus 17,860 lots Thursday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Feb'12 3,137 3,138 -1 3,150 3,132 Mar'12 3,136 3,137 -1 3,150 3,129 Apr'12 3,135 3,131 +4 3,146 3,123 May'12 3,126 3,126 Unch 3,141 3,118
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
January 27, 2012 05:44 ET (10:44 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.
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