Malaysian palm oil futures firm, awaits trade data

04 Dec, 2004

Malaysian crude palm oil futures ended firm on Friday after choppy trade in the final minutes brought life to a market drifting most of the day from a lack of leads. Prices were mixed in the morning after a drop in rival US soyaoil led some to sell, while anticipation over crop and trade data due in the week ahead encouraged others to cover.
The momentum picked up in late trade as more buyers emerged.
But contracts still ended almost flat in a gush of last minute selling. Volume for the day stood at 3,795 lots of 25 tonnes each. On a busy day, the market usually sees a turnover of 6,000 lots or more.
At the close, Bursar Malaysia Derivatives' benchmark third-month palm oil contract, February, was up just 1 ringgit at 1,416 ringgit ($372.63) a tonne. It had risen as much as 8 ringgit to an intrude high of 1,423, and fell 4 ringgit to a low of 1,411.
The broader futures market closed 1 to 4 ringgits up. "The whole market's geared up for next week," said a dealer. "That's why there's been so little happening the last few days." The market's leading forecaster Ivan Wong is scheduled to release by next on Tuesday a fresh outlook on supply and demand of palm oil for November through January.
Two cargo surveyors watched by the market are also due to release next week export estimates of palm oil for December 1-10.
Society Generale de Surveillance, the main surveyor of Malaysian oil palm cargoes, had estimated exports for November at 1,095,099 tonnes, down 10.8 percent from the 1,227,363 tonnes it tracked for October. Physical oil for December saw bids/offers at 1,450/1,455 ringgit a tonne in Malaysia's southern and central regions, unchanged from Thursday.
Deals were reported at 1,450-1,452.50 ringgit in the south and 1,450 in the central region.
Physical oil for January saw buyers at 1,435 ringgit a tonne and sellers at 1,450. No trades were reported.
PALM OIL FUTURES:
December (south): 1455
Open/High/Low: 1413/1423/1411
Previous closes: 1455
PALM OIL PHYSICALS:
February (third month): 1416
Previous settlement: 1415
FUTURES: Benchmark February up 1 ringgit to 1,416 ringgit ($372.63) a tonne.
PHYSICALS: December offers flat from Thursday's close.

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