In The News - 05/07/2005

Malaysian palm oil prices closed up on Monday, shadowing a positive trend in Chicago soyoil at the end of last week, but trade was light with U.S.

markets closed for a holiday.

The Chicago Board of Trade, which has led moves in crude palm oil futures on Bursa Malaysia Derivatives for weeks, was shut on Monday for U.S. Independence Day.

Prices on the CBOT and Bursa Malaysia often move in step as soyoil and palm oil compete for export markets.

Palm oil futures saw mild action, with volume at below 4,000 lots of 25 tonnes each <0#KPO:>. The market usually sees 6,000

lots of more on a busy day.

More than 90 percent of the transactions were concluded in the afternoon, after players spent the morning looking for direction. As the close approached, a spurt of activity took the volume up.

"We've been following CBOT's Project A almost every day and without it, no one seems to know what to do," said a palm oil trader, referring to the electronic trade of soyoil futures conducted during Asian market hours.

The third-month crude palm oil contract on Bursa Malaysia, September <KPOU5>, ended up six ringgit at 1,418 ringgit ($373.16) a tonne. Its high for the day was 1,422 ringgit.

Other traded months for palm oil settled up 3 to 6 ringgit. Trade in physical crude palm oil was also modest. 

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