Palm Oil Down on Weak Soyoil

MALAYSIAN crude palm oil futures edged 0.9 per cent lower on Tuesday on weaker soyoil prices, while some traders waited by the sidelines for a major industry conference to begin this week. The benchmark February contract on the Bursa Malaysia Derivatives Exchange traded down RM23 at RM2,449(US$722.8). Traded volumes were rather light at 4,432 lots at 25 tonnes each compared to the usual 5,000 lots. “The market volumes are starting to weaken, many traders are starting to close their positions since it is the end of the year,” said a trader with a foreign commodities brokerage. “There are no changes to the fundamentals but many are waiting for the last palm oil conference this year for some guidance.”

The three-day Indonesian Palm Oil Conference and Price Outlook 2010 at the resort island of Bali will start on Wednesday and feature analysts like Dorab Mistry, Thomas Mielke and James Fry who will give their views on the industry for next year. Traders expect a small drawdown in stocks this month as exports are still resilient and production growth has likely been limited by heavy rains in key oil palm growing areas in Malaysia. U.S. soyoil for December delivery dropped 0.4 per cent, while the most-active September soybean oil contract on China’s Dalian Commodity exchange edged lower. Oil rose above US$77 a barrel on Tuesday, after a rebound of 1.6 per cent in the previous session, as Dubai debt default fears eased and cautious investors cast about for fresh clues to the pace of global economic recovery.- Reuters Source : Business Times
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