Vegoils Palm oil ends little changed after hitting 2-wk high

by **Cals** Sat 28 Dec 2013, 02:15

Vegoils Palm oil ends little changed after hitting 2-wk high

Business & Markets 2013

Written by Reuters

Friday, 27 December 2013 18:40

SINGAPORE (Dec 27): Malaysian palm oil futures recouped early losses to hit a two-week high before ending little changed on Friday as thin volumes ahead of year-end holidays exaggerated movements.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed 0.08 percent lower at 2,632 ringgit ($800) a tonne after rising to 2,653 ringgit, its strongest since Dec. 12, on bargain hunting and worries about supply due to monsoon floods.

The Malaysian market, which sets the tone for global prices, is set for its first annual gain in three.

"We may see prices pressured downward unless the upward price momentum becomes stronger. The key support level will be 2,545 ringgit while the resistance level is 2,700 ringgit," said Teoh Say Hwa, head of investment at Phillip Futures.

Reflecting a volatile year-end trade, the contract had earlier dropped to an intraday low of 2,626 ringgit because of a slight rebound in the ringgit.

Total volumes were 19,149 lots, well below the average 35,000 lots.

Palm oil production in Malaysia might be hampered as a second wave of flood may hit Pahang by the end of December according to Malaysia Meteorology Department's warning, said Say Hwa at Phillip Futures.

Malaysia Palm Oil Board data shows the second largest matured oil palm planted area in Peninsular Malaysia is in Pahang and the possible flood may disrupt harvesting and transportation of fresh fruits in that area, she said.

The ringgit rose as a strong yuan spurred short-covering, but most emerging Asian currencies are likely to stay weaker on expectations a solid U.S. recovery may allow the Federal Reserve to further taper stimulus.

In other competing vegetable oil markets, the U.S. soyoil contract for January was up 0.21 percent, while the most active May soybean oil contract on the Dalian Commodities Exchange barely moved.

Palm, soy and crude oil prices at 1004 GMT

Contract        Month    Last   Change     Low    High Volume
MY PALM OIL      JAN4    2615    +3.00    2600    2628      50
MY PALM OIL      FEB4    2624    -2.00    2618    2640    2143
MY PALM OIL      MAR4    2632    -2.00    2626    2653   10611
CHINA PALM OLEIN MAY4    6050 +112.00    5928    6066 860784
CHINA SOYOIL     MAY4    6922   +46.00    6842    6928 557200
CBOT SOY OIL     MAR4   39.31    +0.13   39.11   39.50    5394
NYMEX CRUDE      FEB4   99.62    +0.07   99.37   99.77    6121
($1=3.29 Malaysian ringgit)