In The News - 06/12/2005
Malaysia's crude palm oil futures ended Tuesday morning trade higher on expectations of higher exports, dealers said.
At the lunch break, the third-month crude palm oil contract on Bursa Malaysia Derivatives, February <KPOG6> was up 9 ringgit at 1,411 ringgit a tonne ($373) after hitting a low of 1,403 ringgit.
"Technically, the market looks steady and supportive," said one Malaysian dealer in Kuala Lumpur.
Other traded months were up 3 to 9 ringgit. The traded volume was 2,453 lots of 25 tonnes each.
Talk that December exports could be better than November's lent some support to prices.
"Fundamentally, they expect demand to improve for this month and production traditionally to come down," said another dealer.
"They were also talking that there will be more robust demand from China next year."
Malaysia is the world's largest palm oil producer and exporter. Its key buyers are China and India.
"Technically, the market is on the upward trend. It already hit the bottom at 1,380 ringgit," said one Malaysian dealer.
Dealers pegged the immediate new resistance at 1,420 ringgit, with support at 1,400 ringgit.
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