KUALA LUMPUR, Aug 28: Malaysian crude palm oil was flat in directionless trade on Wednesday, ignoring gains in CBOT soy markets as players cautiously waited for August exports figures due next week.

At the close, the benchmark third month November futures contract was unchanged at 1,495 ringgit ($393.42) a ton after touching a high of 1,505 ringgit. The contract had opened at 1,498 ringgit.

Volume was moderate at 2,927 lots.

Soyaoil currently commands a premium of $60-$80 a ton to palm oil due to drought in the US, the top soybean producer, and a slowdown in exports from crisis-hit Brazil and Argentina, the world’s second and third largest producers, they said.

Ship owners think the freight market is going to be firmer, that’s why they hold onto their vessels, said one broker. It is true people are having some trouble getting ships.

Freight rates from Malaysia/Indonesia to major destinations such as India, China, Pakistan and Europe had risen by $1-$2 a ton this month as demand improved.

Shipment bookings to India, China and Pakistan had reached around 350,000, 300,000 and 150,000 tons respectively in August, which suggested that those main buyers were showing a healthy appetite for palm oil, traders and freight brokers said.

In physical trading of crude palm oil, the August/September contract for the southern and central zones saw bids at 1,505 ringgit a ton against sale offers at 1,510 ringgit.

Deals were reported at 1,505 ringgit a ton for both sides.—Reuters