JAKARTA: Malaysian palm oil futures rose on Thursday, with prices range-bound as many traders sat on their hands as they awaited fresh impetus and direction in a lacklustre market with thin volumes.

“The market has hardly moved – just a few points,” said a trader with a foreign commodities brokerage in Kuala Lumpur. “There needs to be a driver for the market to go outside 10 points.”

By day’s close, the benchmark June contract on Bursa Malaysia Derivatives was up 0.65 percent at 2,168 ringgit ($591) a tonne. Prices continue to trade near two-week lows and earlier touched 2,150 ringgit.

Total traded volume stood at 26,167 lots of 25 tonnes, well below the average 35,000 lots.

Technical charts show palm oil is poised to break support at 2,146 ringgit per tonne and drop further to 2,106 ringgit, Reuters market analyst Wang Tao said.      

“The market is holding,” said a second trader with a foreign commodities brokerage in Kuala Lumpur. “Without any bullish or bearish news it is range-bound.”

“We’re waiting for new leads,” he said, adding that Malaysia’s first 10 days export figures due next week may provide stronger direction.

In comparative vegetable oils, the U.S. soyoil May contract edged up 0.1 percent, while the most active September soybean oil contract on the Dalian Commodity Exchange was up 0.56 percent.

Oil prices slipped on Thursday as officials from the big global powers remained locked in nuclear talks with Iran that, if successful, could allow the Islamic state to release more crude oil onto world markets.

Palm, soy and crude oil prices at 1049 GMT
                                                                        
 Contract        Month    Last   Change     Low    High  Volume
 MY PALM OIL      MAY5    2173   +12.00    2157    2176    2018
 MY PALM OIL      JUN5    2168   +12.00    2150    2172   15223
 CHINA PALM OLEIN SEP5    4670   +12.00    4612    4688  572444
 CHINA SOYOIL     SEP5    5394   +30.00    5336    5428  606874
 CBOT SOY OIL     MAY5   30.71    +0.00   30.60   30.86    5434
 
 Palm oil prices in Malaysian ringgit per tonne
 Dalian soy oil and RBD palm olein in Chinese yuan per tonne
 ($1 = 3.6690 ringgit)
($1 = 6.1968 Chinese yuan)
($1 = 62.2000 Indian rupees)
– Reuters

 

Source : The Star

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