Buying support at the last minute saw Malaysian crude palm oil futures closing higher on Friday after spending most of the day in negative territory due to profit-taking on recent gains.
"I don't know who or why but someone bought 400 lots in the last minute to send the market up," said a trader after the benchmark contract on the Malaysia Derivatives Exchange finished with a 10 ringgit gain from a loss of up to 17.
The September contract closed at the day's high 1,559 ringgit ($410.26) a tonne. It fell to a low of 1,532. Players started booking profits shortly after the bell as the September contract carried gains of more than 90 ringgit after an upturn in sentiment this week.
A firmer close in rival Chicago soyaoil on Thursday and a slight rise in month-on-month export estimates of palm oil did not have any positive impact. Break, the benchmark contract was down 14 ringgit and seemed destined to close lower until the sudden turnaround.
Trade on Friday totalled 3,732 lots, down from Thursday's 4,614 lots. Interlake Testing Services (ITS), one of the two cargo surveyors for Malaysian palm oil exports, estimated shipments for June 1-25 at 815,170 tonnes versus 769,383 tonnes for May 1-25.
But Society Generate de Surveillance (SGS), the other cargo tracker whose figures are more closely watched by the market, said exports for June 1-25 stood at 816,853 tonnes, up from 769,493 tonnes for May l-25.
"The figures were below market expectations," said one trader. "We were expecting around 830,000 at least." Unless there was further improvement in the exports, dealers said the market could be locked in the 1,550-1,580 ringgit range next week.
ITS and SGS are due to give estimates for June exports on Wednesday. Physical crude palm oil was also quoted up, following the higher close in futures. June/July saw buyers/sellers at 1,565/1,570 ringgit a tonne in the southern and central regions, against on Thursday's close of 1,560/1,565.
Trade was reported at 1,560-1,565 ringgit in the south and 1,560-1,562.50 in the central region.
PALM OIL FUTURES:
June (south): 1570.
Open/High/Low: 1554/1559/1532.
Previous closes: 1565.
PALM OIL PHYSICALS:
September (3rd month): 1559.
Previous settlement: 1549.
FUTURES:
Benchmark third-month September up 10 ringgit at 1,559 ringgit ($410.26) a tonne.
PHYSICALS: Also up.
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