Malaysian palm oil futures edged up on Tuesday, as hopes grew that Europe would take steps to tackle its debt crisis, which has triggered a massive selloff in global financial markets. France's Francois Hollande will push a proposal for mutualising European debt at an informal summit of EU leaders on Wednesday, sending the markets positive signals and easing some investors' fears.
"The market is still stuck within yesterday's range, it's a continuation of the consolidation phase. No one wants to do anything as market sentiment is still rather mixed," said a dealer with a foreign commodities brokerage in Malaysia. Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange ended up 0.4 percent higher at 3,110 ringgit ($997) per tonne. Traded volumes picked up after the midday break with 27,849 lots of 25 tonnes each, slightly more than the usual 25,000 lots.
Palm oil trading looks neutral in a range of 3,019 to 3,136 ringgit per tonne, said Reuters market analyst Wang Tao based on technical analysis. Fundamentals remain intact as demand for the edible oil looks healthy, reflected by higher Malaysian palm oil exports for May 1-20 from a month ago.
Exports inched up 2.1 percent to 862,337 tonnes, cargo surveyor Intertek Testing Services said. In other vegetable oil markets, the most active US soyoil contract for July was flat in Asian trade while the most active Dalian soyoil September contract gained 0.2 percent.
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