technical buying and production concerns in the world’s No.2 producer
of the vegetable oil.
Benchmark June crude palm oil futures
on the Bursa Malaysia Derivatives Exchange settled down RM6 at RM2,569
a tonne after going as low as RM2,500, a level not seen since Feb. 12.
Overall traded volume doubled to 20,673 lots of 25 tonnes each.
“There is a retracement as the market has been oversold for the
past two days,” said a trader with a foreign brokerage in Kuala Lumpur.
“The dry spell is still a concern, it may hit production further this
month.”
Another trader said the market was on the lookout
to see if stocks in Malaysia will come down further in March. He pegged
the market’s trading range at between RM2,500 and RM2,620 a tonne.
Crude oil prices steadied below US$80 (US$1.00 = RM3.34) a barrel in
Asian hours, after a fall of nearly 2 per cent in the previous
session, its biggest one-day fall in more than two weeks, as the market
awaited the outcome of organization of the petrolieum exporting
countries and central bank meetings.
Firm oil supported US
soyoil futures that also rose on loading delays in Brazil as supplies
from the ongoing harvest and rainy weather overwhelmed transportation
capacity in the world’s second largest soy exporter.
Source : Business Times
