Malaysian crude palm oil futures were mostly higher in late trade on Wednesday aided by short covering on the physical side. Overall volume was moderate; suggesting many players refrained from taking fresh positions ahead of the release of export data on Thursday's expiry of future contracts.
The benchmark third-month crude palm oil contract on Bursar Malaysia Derivatives, November, closed three ringgit higher at 1,390 ringgit ($368.70) after trading as high as 1,392.
Overall volume stood at 3,730 lots of 25 tonnes each. Dealers pegged immediate resistance at 1,400 ringgit. "The market is waiting for more leads but I think buyers are still around.
That's why we see short covering in late trade," said one dealer in Kuala Lumpur. The market awaits the exports estimates for September 1-15 to be released on Thursday by cargo surveyors SGS and ITS.
In the US market, September soyaoil closed down 0.07 cents per lb. at 21.97 cents, tracking falls in soyabean futures amid lingering pressure from USA's larger-than expected US soya crop estimate issued this week.
In physical dealings of crude palm oil, September was offered at 1,390 ringgit a tonne in the southern region against bids of 1,385 ringgit. Deals were done at 1,382.50 to 1,385 ringgit.
September saw bids at 1,377.50 ringgit in the central region while offers stood at 1,385. Deals were done at 1,375 to 1,377.50. October saw offers at 1,395 and bids at 1,390 in the southern part of Malaysia. Deals were done at 1,390.
Offers for the central zone were at 1,390 ringgit while bids were at 1,385. Trades were reported at 1,385.
PALM OIL FUTURES:
September (south): 1390.
Open/High/Low: 1387/1392/1384.
Previous close: 1385.
PALM OIL PHYSICALS:
November (3rd month): 1390.
Previous settlement: 1387.
FUTURES:
Benchmark November ended three ringgit higher at 1,390 ringgit ($368.70) a tonne on physical buying. Dealers await September 1-15 palm oil export data due on Thursday.
PHYSICALS: Active.