KUALA LUMPUR (Dow Jones)–Crude palm oil futures on Malaysia’s derivatives exchange rebounded Friday, fueled by speculative buying interest and short covering ahead of the weekend.
The benchmark July contract on the Bursa Malaysia Derivatives recovered lost ground in the last 30 minutes of trade to end 0.7% higher at MYR3,500 a metric ton after trading in a MYR3,444-MYR3,509/ton range. Palm oil gained 0.1% this week.
May soyoil on the Chicago Board of Trade was trading 0.4% higher at 55.38 cents a pound by the end of trade on the BMD.
Palm oil prices bounced back in late trade as a dip in prices attracted buying interest at a time when nearby supplies of the tropical oil remain tight, a trading executive in Kuala Lumpur said.
“Palm oil refiners weren’t selling actively today. This lack of selling pressure enticed bullish traders to come back into the market,” S. Paramalingam, executive director at Kuala Lumpur-based Pelindung Bestari, said.
Trading executives also said a modest drop in April 1-20 export estimates were seen as an improvement from a sharp 15% drop for the first 15 days of the month, which helped limit declines in afternoon trade.
Cargo surveyor Intertek Agri Services said April 1-20 exports fell 5.6% to 844,453 tons while another surveyor, SGS (Malaysia) Bhd., put the figure at 839,829 tons, a drop of 5.3%.
“We’re also seeing some nearby [supply] tightness in Malaysia” due to weak production growth in the world’s no. 2 CPO producer, a vegoil exporter in Pasir Gudang said.
Palm oil prices may rise toward MYR3,550/ton next week, as vegoil supplies could tighten further due to weather concerns in major soybean growing areas in South America, the Johor-based exporter said.
Planters said earlier this week that CPO production in several estates located in the major oil palm producing state of Sabah probably fell 9%-15% in the first 15 days of the month.
In the cash market, refined palm olein for May was offered at $1,157.50/ton while cash CPO for prompt shipment was offered at MYR3,520/ton.
Open interest on the BMD was 115,733 lots, versus 116,458 lots Thursday. One lot is equivalent to 25 tons.
A total of 29,436 lots of CPO were traded versus 34,170 lots Thursday.
On next Monday Support And Resistance Is :
Support Watch This Area :
| 3477 | 3459 | 3442 |
Resistance Watch This Area :
| 3524 | 3541 | 3559 | 3576 |
Reminder : Daily is still in buy signal and has retraced to 61.8% ... get ready for “ Moooolah” ^_6
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