In The News - 02/12/2005
Malaysia's crude palm oil futures were mostly higher in active trade on Monday, aided by short covering and a firm soyoil market.
The third-month crude palm oil contract on Bursa Malaysia Derivatives, February <KPOG6> ended five ringgit higher at 1,402 ringgit a tonne ($370.85). It had touched its highest level in a week at 1,407 ringgit a tonne.
Overall volume was heavy at 4,680 lots.
December soyoil <BOZ5> was 0.25 cents per pound higher at 21.29 cents in electronic trading, keeping the gains made in Chicago Board of Trade.
Dealers said last-minute buying by some palm oil trading firms in the physical sector helped push up the futures market but uncertainty over future outlook limited gains.
"There's a little bit of short covering and buying. I think 1,420 ringgit should be the immediate resistance, while support is still at 1,380 ringgit," one dealer in Kuala Lumpur.
Some locals industry officials said physical stocks of the commodity to have reached their highest-ever level by end-November in Malaysia, 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.
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