In The News - 01/12/2005
Malaysian crude palm oil futures lost almost half a percent by midsession on Friday as selling extended into a fifth day.
The third-month crude palm oil contract on Bursa Malaysia Derivatives, February <KPOG6>, entered the lunch break down 5 ringgit at 1,382 ringgit ($365.66) a tonne.
"I don't think we'll be going back to 1,400 ringgit any time soon," one trader said, referring to what had been the market's support level for two months before it was broken this week.
The outlook for palm oil has turned bleak, with industry experts predicting that physical stocks of the commodity could reach their highest level ever by end-November due to poor sales.
A Reuters poll on Wednesday of leading plantation houses showed that inventories of both crude and refined palm oil could hit 1.6 million tonnes by end-November -- up 6.9 percent from end-October.
Thursday's volatile market for U.S. soyoil -- the main competitor to palm oil -- also weighed on local prices.
December soyoil <BOZ5> on the Chicago Board of Trade was down 0.01 cent a lb at Thursday's close. It lost a further 0.02 cent by 0550 GMT in Friday's electronic trade <0#ZL:> conducted during Asian trading hours.
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