Crude palm oil futures prices on Malaysia's derivatives exchange were little changed Tuesday, with investors taking profit after prices were unable to sustain early gains due to a pullback in crude and soyoil prices in Asia.
The benchmark February contract on the Bursa Malaysia Derivatives ended MYR6 higher at MYR2,342 a ton, after trading in a narrow range throughout the day.Prices were a tad choppy in the afternoon session, moving in positive and negative territories as weak crude pressured prices while palm oil's widening discount to soyoil supported.
"Prices are taking a breather (after rising 2.1%) yesterday. But CPO prices aren't likely to dip too much, as palm oil is trading at a $140-$150/ton discount to soyoil," making the former a cheaper alternative to soyoil, said a senior executive from Kuala Lumpur-based commodities brokerage.
He added palm oil prices will likely be supported by "weather concerns, as heavy rains and floods may disrupt harvesting activity in oil palm estates."
Expectations of a likely rise in November exports also helped support prices, traders said.
Cargo surveyor Intertek yesterday estimated Malaysia's Nov. 1-15 palm oil exports rose 13% from the same period last month to 674,148 tons.
Another surveyor, SGS (Malaysia) Bhd., estimated the exports rose 21% to 717,936 tons.
"CPO prices have risen significantly in the past few days and buying interest may ease off until palm futures come down to the MYR2,300 level," a Hong Kong-based edible oils trading executive had said earlier.In the cash market, cash palm olein for December traded at $717/ton and $715/ton, April/May/June at $740/ton, $737.50/ton and $735/ton, free on board Malaysian ports, a Singapore-based trader said.
Cash CPO for prompt shipment was offered MYR10 lower at MYR2,280/ton.
A total of 15,620 lots of CPO were traded on the BMD versus 19,503 lots Monday.
The open interest stood at 96,158 lots Tuesday, down from 94,729 lots. One lot is equivalent to 25 tons.
No comments:
Post a Comment