Palm Oil Futures Down as Dealers Wait for Leads

CRUDE palm oil futures on Bursa Malaysia Derivatives closed lower yesterday as most investors stayed on the sidelines to wait for more market moving news, said dealers.

“The market moved in a tight range as the stronger ringgit put some pressure on commodities,” they said.

Another trader pegged support and resistance levels at RM2,500 and RM2,600 , saying that the market was on the lookout for fresh leads.

The better-than-expected Malaysian palm oil export data for March supported prices in the previous session, but dealers said it was not going to have long term impact.

“The market is in a a mixed situation with no clear direction. It is going sideways to downward,” a dealer at a local brokerage said.

The crude palm oil futures for April 2010 declined RM34 to RM2,594 a tonne.

May 2010 declined RM10 to RM2,555 a tonne, June 2010 fell by RM13 to RM2,543 and July 2010 eased RM1 to RM2,535.

The overall volume rose to 22,873 lots from 14,487 lots on Wednesday, while open interest declined to 77,494 contracts from 77,934 previously.

On the physical market, April South was down by RM30 to RM2,630.

Source : Business Times

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