January 24, 2003	Friday	Ziqa’ad 20, 1423

KUALA LUMPUR, Jan 23: Malaysian crude palm oil futures extended gains on Thursday as anticipation of tighter supplies in coming months prompted short-covering.

Gains in rival soya futures also supported palm oil prices.

The benchmark third-month April contract ended up 24 ringgit at 1,635 ringgit ($430.26) a ton, adding to Wednesday’s 20 ringgit gain.

Overall volume was heavy at 7,748 lots, up from Wednesday’s 5,122 lots.

Traders pegged immediate resistance at 1,650 ringgit, but some predicted the third-month contract could test its recent high of 1,695 ringgit in coming weeks.

Private crop forecaster Ivan Wong expects Malaysia’s palm oil output to fall to 850,000-855,000 tons in January from 922,325 tons in December, and to drop further to 730,000-735,000 tons in February.

In the physical sector, the January/February crude palm oil contract was offered at 1,655 ringgit a ton up 20 ringgit from Wednesday for southern and central regions. Bids were at 1,645 ringgit.

Trades were reported at 1,640 to 1,655 ringgit for January.

—Reuters