Palm Futures End Lower on Technical Buying

MALAYSIAN palm oil futures ended off one-month lows yesterday on
technical buying and production concerns in the world’s No.2 producer

of the vegetable oil.

Benchmark June crude palm oil futures

on the Bursa Malaysia Derivatives Exchange settled down RM6 at RM2,569

a tonne after going as low as RM2,500, a level not seen since Feb. 12.

Overall traded volume doubled to 20,673 lots of 25 tonnes each.

“There is a retracement as the market has been oversold for the

past two days,” said a trader with a foreign brokerage in Kuala Lumpur.

“The dry spell is still a concern, it may hit production further this

month.”

Another trader said the market was on the lookout

to see if stocks in Malaysia will come down further in March. He pegged

the market’s trading range at between RM2,500 and RM2,620 a tonne.

Crude oil prices steadied below US$80 (US$1.00 = RM3.34) a barrel in

Asian hours, after a fall of nearly 2 per cent in the previous

session, its biggest one-day fall in more than two weeks, as the market

awaited the outcome of organization of the petrolieum exporting

countries and central bank meetings.

Firm oil supported US

soyoil futures that also rose on loading delays in Brazil as supplies

from the ongoing harvest and rainy weather overwhelmed transportation

capacity in the world’s second largest soy exporter.

Source : Business Times

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