In The News - 29/11/2005
Malaysian crude palm oil futures closed below 1,400 ringgit ($370) a tonne on Tuesday after briefly regaining the key support level it lost a day ago.
Dealers said the market could not sustain its highs due to a fresh fall in soyoil -- the main competitor to palm oil.
Buyers were also reluctant to build long positions ahead of Wednesday's data from cargo surveyors estimating exports of Malaysian palm oil for November.
Traders expected a drop of 18 to 20 percent month-on-month in shipment figures to be released by cargo surveyors Intertek Testing Services and Societe Generale de Surveillance.
"The market could re-attempt 1,400 ringgit after the export numbers are out," said a trader. "But that will depend on how soyoil behaves."
The third-month palm contract on Bursa Malaysia Derivatives, February <KPOG6>, closed down 3 ringgit, or 0.2 percent, at 1,396 ringgit a tonne.
It had risen as much as five ringgit in morning trade to touch a high for the day of 1,404.
Other traded months ended down 1-3 ringgit <0#KPO:>.
Overall trade totalled 4,485 lots of 25 tonnes each, against Monday's heavy volume of 6,801 lots.
Palm oil has struggled to stay above 1,400 ringgit this month as long festive holidays led to thinner exports than October.
Friday's fall in Chicago soyoil dealt a blow to palm oil's long-defended support, pushing the market to a two-month low on Monday.
Soyoil futures on the Chicago Board of Trade rebounded by Monday's close, with December <BOZ5> rising 0.11 cent a lb to 21.24 cents. But prices fell again in Tuesday's electronic trade <0#ZL:>, conducted during day hours in Asia.
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