KUALA LUMPUR, Dec 16: Malaysian crude palm oil futures ended up on Friday, returning above 1,400 ringgit, but dealers said they were uncertain if that level could be defended in days ahead.
High physical stocks of oil in the market told players prices should be lower, but the fear of a sudden rally sparked by Chicago soyaoil made them wary of taking prices down too far, dealers said.
At Friday’s close, the new third-month crude palm oil contract on Bursa Malaysia Derivatives, March, ended up one ringgit at 1,401 ringgit ($370.83) a ton. Its high for the day was 1,403.
Friday’s rebound was aided by strong demand in the physical palm oil market for RBD olein, dealers said.
Overall volume amounted to 2,425 lots of 25 tons each, down sharply from Thursday’s 4,274 lots. The market can breach 6,000 lots on a typically busy day.
In physical crude palm oil, offers for December closed at 1,390 ringgit a ton, against bids at 1,382.50. Trades were reported at 1,380 ringgit..—Reuters
