In The News - 28/11/2005
Malaysian crude palm oil futures dived to a two-month low on Monday, breaking key support as the market tracked a slump in fall in U.S. soyoil.
The third-month contract on Bursa Malaysia Derivatives, February <KPOG6>, ended down 19 ringgit, or 1.4 percent, at 1,399 ringgit ($370.15) a tonne, just below 1,400 support.
Its low for the day was 1,396 ringgit -- a level last seen on Sept. 19.
But dealers expected the market to rebound above 1,400 before the week was through.
"It's a CBOT-driven liquidation, nothing more than that," said a trader.
"I wouldn't say our fundamentals are pretty, but they are enough to support us at 1,400, unless of course the CBOT takes a bigger hammering in the next few days," he added.
Soyoil futures on the Chicago Board of Trade fell sharply on Friday, trailing a nine-month low in soybeans as the market reopened from a Thanksgiving holiday.
At Friday' close, CBOT's December soyoil <BOZ5> was down 0.50 cent a lb to 21.13 cents. It lost another 0.33 cent in Monday's electronic trade <0#ZL:>, conducted during day hours in Asia.
Palm oil futures had come close to breaking 1,400 ringgit on a couple of occasions this month as long holidays led to thinner exports.
Societe Generale de Surveillance (SGS), the market's main exports surveyor, estimated last week a 21 percent drop in Nov. 1-25 shipments compared with figures tracked for Oct. 1-25.
SGS is scheduled to release on Wednesday estimates for the whole of November.
In Monday's futures market, other traded months for palm oil settled down 17 to 22 ringgit <0#KPO:>.
Overall volume stood at 6,801 lots of 25 tonnes each, almost double Friday's tally of 3,905 lots.
For More Inquiries:
Our e-mail
: [email protected]