Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday on spillover support from gains in China and a bullish outlook for soyoil, trade participants said.
They added that concerns over dry weather in the U.S. adversely affecting the upcoming soybean harvest provided support.
The benchmark November contract on the Bursa Malaysia Derivatives ended MYR50 higher at MYR 2,620 a metric ton after hitting an intraday high of MYR2,630.
CPO production in Malaysia and Indonesia is estimated to be significantly lower on month in August and early September as many plantation workers are on leave amid the Muslim holy month of Ramadan, a Singapore-based trading executive said.
Another trader said there will be downward pressure on prices only if Malaysia's end-month closing stocks are estimated above 1.6 million tons.
Malaysia's end-month palm oil stocks were estimated at 1.52 million tons, up 7% on month in July.
Malaysia usually puts out figures on production, exports and end-month closing stocks of palm oil by the 10th of every month but the numbers for August are likely to be delayed because of the upcoming Muslim festival of Eid.
Most traders put immediate resistance at MYR2,630/ton.
Traders expect prices to move within the current range of MYR2,550- MYR2,620/ton until next week due to thin trade participation.
Many among them are also awaiting fresh leads from key soybean crop data of the U.S. Department of Agriculture to be issued by the end of this week.
In the cash market, palm olein for delivery in November and December traded at $872.5/ton and $875/ton, free on board Malaysian ports.
Cargoes for April/May/June changed hands at $860-$865/ton, FOB, a Singapore-based exporter said.
Open interest on the BMD was 67,081 lots, versus 69,764 lots Friday. One lot is equivalent to 25 tons.
A total of lots of CPO 14,090 were traded versus 10,683 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Sep'10 2,739 2,695 Up 44 2,740 2,702 Oct'10 2,670 2,624 Up 46 2,680 2,639 Nov'10 2,620 2,570 Up 50 2,630 2,585 Dec'10 2,612 2,564 Up 48 2,618 2,578 Jan'11 2,603 2,555 Up 48 2,612 2,595
-By Surabhi Choudhary, Dow Jones Newswires; +65 6415-4086; surabhi.choudhary@dowjones.com
(END) Dow Jones Newswires
September 06, 2010 07:41 ET (11:41 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
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