Malaysian crude palm oil futures finished higher on Monday, as higher prices of rival soyaoil and market-friendly data on stocks and exports boosted buying interest. The benchmark January contract on the Bursar Malaysia Derivatives exchange closed up 19 ringgit at 1,694 ringgit ($466) a tonne after trading in a range of 1,666 to 1,696 ringgit.
"It was a slow start in the morning but buying picked up just before lunch as soyaoil went up," said one dealer. "The market is also reacting to exports and stocks data which were very bullish." Other traded contracts were up between 12 and 19 ringgit. Overall volume stood at 10,012 lots of 25 tonnes each.
Open interest, which indicates the number of players in the market, was marginally up at 84,336 compared with 83,195 lots on Friday. Exports of Malaysian palm oil products for November 1-10 rose 0.8 percent to 487,580 tonnes from 483,583 tonnes during October 1-10, cargo surveyor Interlake Testing Services said.
Another cargo surveyor, Society General de Surveillance, whose data is closely watched by the industry, said exports during the period rose marginally to 451,440 tonnes. The MPOB said stocks at the end of October fell 11.44 percent and output was down 13.03 percent. It said exports during the month jumped 9.13 percent.
But the market closed lower on Friday, despite the friendly numbers, as players took profit ahead of the weekend. On Monday's electronic trading during Asian hours, CBOT soyaoil rose, with the December contract up 0.11 cent at 27.80 cents per lb. Soyaoil and palm oil compete for exports and their prices often move in step. In the physical crude palm oil market, November shipment for the southern region was quoted at 1,660/1,665 ringgit a tonne. Trades were done between 1,650 and 1,660 ringgit a tonne.
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