KUALA LUMPUR, March 23: Malaysian crude palm oil futures closed more than half a per cent down on Wednesday, just above the psychologically important level of 1,400 ringgit, after a drop in rival soyaoil. Dealers said export numbers of palm oil for March 1 to 25, due on Friday, will determine how the market ends the week.
“We could stick to the 1,400 band if there is a rebound in soyaoil soon,” said a futures trader in Kuala Lumpur. “Otherwise, the export numbers will tell us where we’re heading.”
Two surveyors of Malaysian oil palm cargoes will release on Friday export estimates for the first 25 days of March versus the corresponding period from a month ago. Their latest figures show a pick-up in palm oil sales in March after a slowdown in February.
The third-month crude palm oil futures contract on Bursa Malaysia Derivatives, June, closed down 9 ringgit at 1,400 ringgit ($368.42) a ton. It had earlier sunk to an intraday low of 1,396.
Other traded contracts were down 4 to 9 ringgit. Trade was brisk, with a total volume of 6,576 lots of 25 tons each. The market typically sees 3,000 lots or more on an active day.
Soyaoil futures on the Chicago Board of Trade surrendered on Tuesday’s gains in after-hours trade, with the May down 0.18 cent at 22.40 cents per lb at 1025 GMT. Soyaoil and palm oil compete for similar export destinations and their prices often move in step.
On the physical crude palm oil market, March saw bids/offers at 1,400/1,410 ringgit a ton in Malaysia’s southern and central regions, unchanged from Tuesday’s close. Trades were reported at 1,405-1,410 ringgit in the south and 1,400-1,405 ringgit in the central region.—Reuters
