In The News - 08/12/2005

Malaysian crude palm oil futures extended losses in active trade on Thursday but buying interest surfaced at lower levels and helped the benchmark

contract to hold above key support at 1,400 ringgit.

The third-month February contract <KPOG6> on Bursa Malaysia Derivatives ended three ringgit lower at 1,410 ringgit ($373.91) a tonne after trading as low as 1,404 ringgit.

Other traded months were down two and three ringgit.

Overall volume was heavy at 4,474 lots.

December soyoil <BOZ5> was 0.05 cents per pound lower at 21.00 cents in electronic trading.

"I saw some covering and there are also expectations that there will be a decline in production this month because the crop is not doing well in some areas," said a dealer in Kuala Lumpur.

"The rainy season has begun and that affects production," he added.

Dealers said the market's next lead would come from December 1-10 palm oil export data. Cargo surveyors ITS and SGS will release their estimates next week and dealers expected year-end covering to boost demand for Malaysian palm oil.

SGS, whose numbers are more closely watched by the market, put exports at 285,482 tonnes in the first 10 days of November down from 473,891 tonnes for Oct. 1-10.

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