In The News - 29/06/2005

Malaysian palm oil futures ended down in volatile trade on Tuesday, with benchmark

September falling nearly 2 percent after the soybean complex tumbled on outlooks for cooler weather.

Third-month September crude palm oil <0#KPO:> fell 26 ringgit a tonne to 1,409 ringgit ($370.79).

The contract had touched a low of 1,401 ringgit.

Overall volume was heavy at 7,583 lots.

"Selling pressure may return to the market tomorrow but I think the price will not go below 1,400 ringgit," said one dealer in Kuala Lumpur.

 "There will be some buying at lower levels. I think 1,400 ringgit can attract buyers, and hopefully soybean oil won't drop much," he said.

Some dealers said talk that Malaysia's output of crude palm oil in June could be down by five percent compared with previous estimates of a 3 percent rise might prevent prices from falling further.

Soybean futures on the Chicago Board of Trade fell as much as 4.5 percent in Asian trade on Tuesday, extending losses blamed on forecasts for cooler temperatures and some rain in the eastern U.S. Midwest. Cooler weather was expected to ease crop stress.

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