MALAYSIAN crude palm oil futures rose 0.9 per cent yesterday along
with other markets after US President Barack Obama’s promises to boost
US jobs and the economy.
However, the combination of ample
global vegetable oils supplies and slowing demand may keep a lid on
prices and prevent further gains, they said.
“We are not out of
the woods yet,” said a trader with a Kuala Lumpur-based brokerage,
adding that huge palm oil stocks in the world’s number 2 grower and
good prospects for South American soy crops will continue to dent
sentiment.
“I think in the near term, the market will consolidate in a range of RM2,400-RM2,550,” said another Malaysian trader.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange
rose RM22 to RM2,451 per tonne. Traded volume was 15,791 lots of 25
tonnes each.
Oil rose towards US$74 (US$1.00 = RM3.40),
rebounding from six-week lows, after Obama’s State of the Union address
and the Fed’s decision to maintain low interest rates revived some
confidence about economic growth.
Global equities also
rallied yesterday as Obama focused on job creation rather than any
concrete details of banking reforms which have spooked financial
markets.
In the Malaysian physical market, palm oil for
January and February delivery was traded at RM2,455-RM2,465 per tonne
in the southern and central regions.
Source : Business Times
