KUALA LUMPUR: Malaysian palm oil futures edged up in tight trade on Thursday, but stayed under the 2,000-ringgit mark as investors braced for an anticipated surge in rival edible oil supply amid rising palm oil production in the world’s top growers.

Benchmark prices are languishing near five-year lows and are headed for their biggest monthly drop since September 2012, as worries of bumper crops of US soybeans and disappointing demand for palm pressured the tropical oil.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange had nudged up 0.3 per cent to 1,982 ringgit ($630) per tonne by Thursday’s close, with prices stuck between 1,965 ringgit and 2,001 ringgit.

Market players said for the past week palm prices were very volatile in early trade as investors hunted for fresh leads on production and exports.

Total traded volume on Thursday stood at 49,349 lots of 25 tonnes, above the average 35,000 lots.

Technicals showed that Malaysian palm oil is expected to test support at 1,950 ringgit per tonne, driven by a wave 5, said Reuters market analyst Wang Tao.

Published in Dawn, August 29th, 2014