In The News - 22/11/2005
Malaysian crude palm oil futures were down at Tuesday's midsession, weakened by the steady slide in rival U.S. soyoil and a lack of leads for buyers.
Third-month crude palm oil on Bursa Malaysia Derivatives, February <KPOG6>, was down 3 ringgit at 1,410 ringgit ($373.08) a tonne at lunch, after touching an intraday low of 1,406.
Overall volume for the morning was 1,471 lots of 25 tonnes each -- heavier than Monday morning's 926 lotss, but less than half of the 3,000 lots seen in a busy first session.
"It's basically a directionless market," said a trader.
Although prices have stayed above the key support of 1,400 ringgit, dealers said there was little potential for a rally due to volatile swings in soyoil prices over the last fortnight.
Poor performance of palm oil exports following long holidays in early November for the Hindu Diwali and Muslim Eid al-Fitr festivals also weighed on the market, dealers said.
"I suspect there are people who'd happily sell below 1,400 ringgit now, but they want someone else to do it first," said another dealer.
Soyoil futures on the Chicago Board of Trade closed down on Monday, with the key December contract losing 0.08 cent to 21.93 cent per lb. It was unchanged in Tuesday's electronic trade <0#ZL:> conducted during day hours in Asia.
Soyoil and palm oil compete for exports and their prices often move in step.
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