Malaysian palm oil higher

12 Jul, 2006

Malaysian crude palm oil futures closed marginally higher on Tuesday because of firm soyaoil prices but gains were limited by large stocks and slow exports, dealers said. "There was a lot of buying in the afternoon session because of soyabean oil prices," one said. "But the market is unlikely to rise much unless exports pick up."
The third-month benchmark September contract on the Bursar Malaysia Derivatives exchange closed up four ringgit at 1,513 ringgit ($414) a tonne. Overall volumes stood at 8,384 lots of 25 tonnes each. Stocks of palm oil at the close of last month totalled 1,645,839 tonnes, up 4.60 percent from end-May because of lower exports, Malaysian Palm Oil Board, the industry's regulator, said on Monday.
Exports for June totalled 1,100,448 tonnes, down 6.02 percent from May, it said.
Strong demand from China and Europe had pushed up the market last week to four-month highs, with the benchmark September contract breaking key resistance at 1,500 ringgit.
Soyabean futures on the Chicago Board of Trade ended firm on Monday after a volatile session, with prices seeing a 12-cent range amid differing views of US Midwest crop forecasts, traders said. In the physical palm oil market, traders were offering crude palm oil for July shipment at 1,455 ringgit a tonne, with bids seen at 1,450. Trades were done at 1,440 to 1,450 ringgit.

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