Sunday, 10 March 2013

Crude Palm Oil Ends Up; Focus on Industry Data

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Friday on technicals-driven buying interest, although values are trading within narrow ranges ahead of a slew of crop data due over the next few days.

Palm oil stockpiles in Malaysia, the world's no. 2 producer, probably easing to their lowest levels in six months helped underpin prices, market participants said.

The benchmark May contract at Bursa Malaysia Derivatives ended 0.6% higher at 2,448 ringgit a metric ton after moving in a MYR2,426-MYR2,451/ton range.

Traders are looking out for a U.S. Department of Agriculture report due later in the global day on its soybean crop outlook and industry regulator Malaysian Palm Oil Board's February crop data on March 11.

Palm oil Inventories likely eased 4.7% to 2.46 million tons on the back of an estimated 13% dip in February output to 1.40 million tons, planters and analysts said.

"Market chatter about a possible double-digit drop in March CPO production also fed into the positive sentiment today," a trading executive at a foreign trading house said, tipping prices to trade in a MYR2,400-MYR2,480/ton band next week.

Palm oil production in Southeast Asia usually dips in November to March before rising from July.

In the cash market, refined palm olein for March shipment was offered at $825/ton, while cash CPO for prompt shipment was offered at MYR2,420/ton.

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