In The News - 07/12/2005
Malaysia's crude palm oil futures were down at Wednesday's midsession in light trading, weakened by falls in rival U.S. soyoil and a lack of leads, dealers said.
At the lunch break, the third-month crude palm oil contract on Bursa Malaysia Derivatives, February <KPOG6> was down 7 ringgit at 1,406 ringgit a tonne ($371.9) after trading as low as 1,404 ringgit.
"The market is very quiet. It is trying to find local news to lead the market," said a Malaysian dealer in Kuala Lumpur.
Other traded months were down 7 ringgit and dealers pegged the immediate new resistance at 1,420 ringgit, with support at 1,400 ringgit in afternoon trading.
The morning traded volume was very thin at 899 lots of 25 tonnes each.The market can easily surpass 6,000 lots on an active day.
"Apparently, the market came down basically because of the weak closing in soyoil," said another Malaysian dealer.
"Soyoil was down quite bad, so buyers were hesitant to buy until they get a clear picture."
Soyoil futures on the Chicago Board of Trade closed down with the key December contract <BOZ5> falling 0.61 cent to 21.05 cents per pound in electronic trading by 0515 GMT on Wednesday.
Soyoil and palm compete for exports and their prices often move in step.
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