February 18, 2006	Saturday	Muharram 19, 1427

KUALA LUMPUR, Feb 17: Malaysian crude palm oil futures fell on Friday after a six-day run higher, but the market was still targeting resistance after setting a new 2006 record for turnover, dealers said.

By the close 13,242 contracts of 25 tons had changed hands, more than twice the level seen on a typically busy day. Dealers said a good part of the volume was due to switching of contract months as a new third-month benchmark came into effect on Thursday.

But it also shows how many people want to keep the market at this level so they can aim for 1,500 ringgit by next week, a trader said, referring to the resistance level since March 2005.

The third-month crude palm oil contract on Bursa Malaysia Derivatives, May, ended down a ringgit at 1,488 ringgit ($400.05) a ton. Other traded months closed down one to seven ringgit. May rose as much four ringgit to peak at 1,493 and then fell to 1,479 at its lows.

It’s the profit-taking that we normally see on a Friday, said another trader. Fundamentally, everthing’s intact and we’re still on track to beating that 1,500 ringgit resistance.

Dealers are counting on the market to rally during next week’s annual Palm Oil Price Outlook Conference in Kuala Lumpur where leaders of the global oils industry are scheduled to speak. Prices last breached 1,500 ringgit 11 months ago, when the third-month contract peaked at 1,504 on March 16.

The outlook for palm oil had picked up after exports began recovering last week from a long holiday between end-January and early-February.

Soyaoil futures on the Chicago Board of Trade, which often determine direction for Malaysian palm oil, rose on Thursday on fund support.—Reuters