Malaysian crude palm oil futures closed higher on Friday, fuelled by record high crude oil prices but gains were capped by lack of demand, traders said. "Crude price seems to be the only factor pushing up the market," one dealer said.
Traders said the market awaits export data of the July 1-15 period from cargo surveyors due to be issued on Monday. "The market's movement next week will depend on export performance," a trader said. The benchmark third-month September contract on the Bursa Malaysia Derivatives ended up seven ringgit at 1,498 ringgit ($408) a tonne but failed to break the resistance level of 1,500 ringgit.
Overall volume stood at 10,180 lots of 25 tonnes each. The palm oil market sometimes tracks energy prices as Malaysia moves closer to the October launch of palm-based biodiesel at domestic pumps. Oil prices surged to record highs above $78 a barrel on Friday as global geopolitical storm clouds gathered, with supply disruption in Opec exporter Nigeria and tensions across the Middle East driving crude into uncharted territory.
US crude for August was quoted at $77.35 a barrel by 1008 GMT, after hitting a record $78.40 as gains came on top of Thursday's $1.75 rally. Stocks of palm oil at the end of June totalled 1,645,839 tonnes, up 4.60 percent from a month earlier, official data showed. Traders expect stocks to rise further in coming months because of higher output and slow exports.
Exports of palm products for July 1-10 stood at 356,093 tonnes, up just 0.7 percent from June 1-10's 353,636, according to cargo surveyor Societe Generale de Surveillance. In the physical palm oil market, crude palm oil for July shipment saw sellers at 1,460 ringgit a tonne and bids at 1,455. Trades were done at 1,440 to 1,455 ringgit a tonne.
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