KUALA LUMPUR, Sept 29: Malaysian crude palm oil futures closed up, rebounding from the previous day’s losses as buyers returned after seeing a rise in US soyaoil prices. Dealers reported speculative buying with export estimates for September just a day away.
The benchmark third-month December contract on Bursa Malaysia Derivatives ended up six at 1,448 ringgit ($384.19) a ton.
It fell 16 ringgit, or one per cent, on Wednesday on profit-taking after a two-day run-up.
Thursday’s high for December was 1,453 ringgit, just above the psychological resistance at 1,450.
People were not really getting in to buy, but there were some speculators trying to push prices up before tomorrow’s export numbers, said a trader.
Two surveyors of Malaysian palm oil shipments are due to release export estimates for September versus last month.
September usually marks the start of one of the busiest periods for palm oil exports as Pakistan, the Middle East and India import more products to prepare for the Ramazan and Diwali festivals in October and November.
The market saw its first evidence of strong exports for this month when leading cargo surveyor Societe Generale de Surveillance estimated a 12.4 per cent rise in the volume shipped between Sept. 1 and 25 compared with Aug. 1 and 25.
Other futures contracts on Thursday settled up four to nine ringgit.
Overall market volume shrunk to 3,594 lots of 25 tons each, down from Wednesday’s 5,548 lots. The market typically sees 6,000 lots or more on an active day.
Soyaoil futures on the Chicago Board of Trade were up on Wednesday as players paid fresh attention to demand for biodiesel, which in the United States is 90-per cent produced from soyaoil.
Offer prices of physical crude palm oil rose five ringgit, following the trend in futures.
September/October saw offers closing at 1,455 ringgit a ton and bids at 1,450 in the southern and central regions of Malaysia.
Trades closed in the south at 1,450 ringgit and in the central zone at 1,445-1,450. —Reuters
