DJ Asian Crude Palm Oil Ends Up 1% On Demand, Likely Lower Stocks 17.08.2011
KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivative exchange rose Wednesday, mostly due to technical buying and expectations of higher demand, although the market remains cautious in view of concerns about global economic growth, trade participants said.
Benchmark November CPO on the Bursa Malaysia Derivatives ended at MYR3,033 a metric ton, up 1.0% from Tuesday's settlement.
Strong export demand for the cooking amid concerns about possible tightness in global vegoil supplies, may push global vegoil prices up in coming weeks, said a commodities analyst at a Malaysia-based investment bank.
December soyoil at the Chicago Board of Trade was 0.2% higher at 55.65 cents a pound by the end of trade on BMD.
BMD palm oil may rise over the next few days toward resistance of MYR3,100/ton, helped higher exports amid slower August production due to the Ramadan holidays, which may contain a buildup of inventory levels, a vegoil exporter in Johor said.
Traded volume on the BMD was thin as Indonesians marked national day and several states in Malaysia also celebrated holidays.
Only 20,179 changed hands compared with 27,587 Tuesday. One lot equals 25 tons.
"MYR3,000/ton will be a key support level for the rest of second half...demand is rising due to tight supply in other substitute vegoils," a commodities analyst at a Singapore-based international bank said.
In the cash market, refined palm olein for September was offered $10 higher at $1,170/ton, while cash CPO for prompt shipment was offered MRY20 higher at MYR3,170/ton.
Open interest was 135,600 contracts compared with 133,750 contracts Tuesday.
Closing BMD CPO futures prices in MYR/ton at 1030 GMT: Month Close Previous Change High Low Sep'11 3,160 3,126 Up 34 3,160 3,137 Oct'11 3,074 3,046 Up 28 3,080 3,044 Nov'11 3,033 3,002 Up 31 3,042 3,003 Dec'11 3,021 2,984 Up 37 3,026 2,988