KUALA LUMPUR, Jan 29: Malaysia’s palm oil futures endured further pressure in late trade on Wednesday as pre-holiday selling intensified and fears of a possible Gulf war put pressure on sentiment, traders said.
We heard some big plantations are liquidating their positions. Of course, we are worried about a possible war in Iraq, but people are reluctant to admit it, said one dealer.
At the close, the benchmark third-month April contract fell 19 ringgit at 1,614 ringgit ($424.74) a ton after trading as high as 1,632 ringgit.
Overall volume was small at 2,749 lots.
The palm oil market will be closed on Friday for the Lunar New Year celebrations. Trading resumes next Wednesday.
In the physical sector, the January/February crude palm oil contract was offered at 1,635 ringgit a ton against bids of 1,625 ringgit for central and southern regions.
Trades were reported at 1,650 to 1,655 ringgit a ton for south and at 1,640 for central.—Reuters
