Malaysian crude palm oil futures edged higher yesterday, recovering a little from two-week lows hit the previous day as traders begin to bet on improved demand in coming weeks.

The benchmark December contract on the Bursa Malaysia Derivative Exchange rose RM2 to RM2,105 per tonne after going as high as RM2,127. The previous day, the market fell to RM2,082, a level unseen since Sept. 14.

“The market has digested much of the bearish news, be it production on the rise or the record US soybean crop,” said a trader with a local commodities brokerage.

“But there is better exports to look forward to because Asian countries need to restock after running down reserves after the festival.” Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will unveil September exports on Wednesday (today).

Palm oil is still below its 200-day moving average of RM2,147 ringgit a tonne, which represents immediate resistance, some traders said.

Global soyoil markets were mostly higher in Asian trade.

The US soyoil futures were up, despite prospects of a record US soy harvest this year although recent cool and wet weather may slow crop maturation and provide support to prices.

Bids for crude palm oil for September and October delivery were seen at RM2,180 while offers stood at RM2,190 for the southern region. Trades were done at RM2,170 and RM2,180 a tonne. Source : Business Times

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