July 6, 2002	Saturday	Rabi-us-Sani 24,1423

KUALA LUMPUR, July 5: Malaysia’s crude palm oil futures ended mostly higher on Friday, indicating players were receptive to the June crop data issued by crop forecaster PALMIS Management Sdn Bhd.

The PALMIS data, compiled by independent market analyst Ivan Wong, showed a modest increase in last month’s output, moderate reduction in end-month stocks, but sharp declines in exports.

I think the numbers are within expectations. That’s why the market behaves this way, said one dealer.

The benchmark third-month September contract was seven ringgit higher at 1,312 ringgit ($345.26) a ton after trading as high as 1,323 ringgit.

The contract had broken key resistance of 1,300 ringgit and touched a low of 1,297 ringgit.

Overall volume was heavy at 3,075 lots.

Wong said Malaysia’s palm oil output in June is expected to reach 954,000 tons, up three per cent from May.

He forecast end-June stocks at 910,000 tons, down 20,000 tons from end-May, while last month’s exports were estimated at 855,000 tons, down 85,000 tons from May.

In the physical market, July/August palm oil contract for the southern region saw bids at 1,320 ringgit a ton, against sale offers at 1,330 ringgit.

Trades were reported at 1,310 to 1,325 ringgit for July and at 1,320 for August.

July (central) was offered at 1,325 ringgit a ton against bids of 1,310 ringgit. Deal was reported at 1,310 ringgit. August (central) was offered at 1,330 ringgit against bids of 1,320 ringgit.

Crude palm oil (CPO) prices on Malaysia’s Derivatives Exchange are expected to rise after falling 2.2 per cent this week, dealers said Friday.

CPO prices for July closed at 1,330 ringgit a ton at the end of the week.

Over the past week the market has dropped drastically on poor demand and also because of a long liquidation from the previous high, said a dealer with a local brokerage.

The dealer said the high price of palmoil had caused major CPO buyers India, Pakistan and China, to stay away from the market, adding that export figures for June were “very low”.

Trading has been choppy and looking at how the market performed in the last few days, it is very difficult to address if the market is going to be on the rise next week, said the dealer.

In the futures market, the July contract fell 30 ringgit over the week to settle at 1,330 a ton. The August contract dipped 36 ringgit to 1,324 while the September contract dropped 43 ringgit to 1,312 a ton.

The average daily price for July was 1332.4 ringgit a ton.

—Reuters/AFP