KUALA LUMPUR (Dow Jones)–Crude palm oil futures on Malaysia’s derivatives exchange gave up gains made earlier Tuesday as investors locked in profits amid euro-zone debt worries, although losses were limited by supportive fundamentals.
The benchmark July contract on Bursa Malaysia Derivatives ended 0.3% lower at MYR3,351 metric ton after trading in a narrow MYR3,351-MYR3,388/ton range.
July soyoil on the Chicago Board of Trade was trading 0.5% higher at 53.87 cents a pound by the end of trade on BMD.
“Resurgent concerns over the euro zone pressured BMD CPO lower, even though fundamentals remain supportive,” a broker at a Singapore-based brokerage firm said. “Prices weren’t able to rise past MYR3,390/ton due to weak follow-through buying, which spurred investors to reduce riskier bets,” he added.
For the time being, market focus is on April crop data by industry regulator the Malaysian Palm Oil Board and May 1-10 export estimates by independent cargo surveyors that are due Thursday, trading executives said.
Palm oil prices are up 4% so far this year, and analysts said prices may push higher in the coming weeks, as demand for the tropical oil may rise on production deficits in major soybean growing areas in South America, limiting availability of the oilseed for crushing into meal and rival soyoil.
“Exports are likely to be higher, thanks to Indian demand and recovering palm oil demand from Europe’s biodiesel industry,” a cooking oil exporter in Johor said.
In the cash market, refined palm olein for July/August/September was traded at $1,125/ton, while October/November/December was traded from $1,115-$1,120/ton, free-on-board Malaysian ports, a Singapore-based physical market broker said.
Cash CPO for prompt shipment was offered MYR10 higher at MYR3,380/ton.
Open interest on the BMD was 124,696 lots, versus 125,434 lots Monday. One lot is equivalent to 25 tons.
A total of 32,797 lots of CPO were traded versus 23,092 lots Monday.
Support Area To Watch
3328 3311 3295 3278
Resistance Area To Watch
3374 3391 3407 3424
EOD Price : 3351
Box area are still the same >>> check it out >>> http://tokancorner.com/2012/05/bursa-malaysia-fcpo-cpo-futures-trading-signal...
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