JAKARTA: Malaysian palm oil futures hit a two-week high on Friday, aided by firmer soy oil prices and with traders expecting prices to remain robust ahead of the onset of the monsoon season.
US soybeans rose above $10 per bushel for the first time in six weeks, buoyed by surprisingly strong demand led by China and tight supplies after harvest delays.
By the close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange ended up 0.5 per cent at 2,180 ringgits ($665) per tonne. Prices have not touched 2,194 ringgit highs since Oct. 10.
The benchmark has gained almost 2pc for the week, but is down 18pc for the year.
Total traded volume stood at 40,973 lots of 25 tonnes, slightly above the usual average of 35,000 lots. Technicals showed palm is expected to retest resistance 2,223 ringgit, said Reuters market analyst Wang Tao.
Published in Dawn, October 25th, 2014
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