Crude palm oil futures on Malaysia's
derivatives exchange edged lower Wednesday after choppy trade over
investor concerns about ample palm oil stockpiles and inconclusive U.S.
fiscal cliff talks.
The benchmark February contract at Bursa
Malaysia Derivatives ended 0.4% lower at 2,284 ringgit a metric ton,
after seesawing between positive and negative territories.
"Sentiment remains weak as palm oil
inventory in November has probably hit another record high. From a
technicals perspective we expect palm oil to aim for MYR2,200/ton as the
market closed below the key psychological level MYR2,300/ton," a
trading executive at a foreign brokerage said.
Market participants said end-November
stockpiles probably reached 2.55 million-2.60 million tons, surpassing
October's 2.51 million tons. The Malaysian Palm Oil Board issues
November crop data on Monday.
Still, some industry players expect palm
oil shipments to surge by the end of December, as exporters with
overseas refineries are moving more cargoes before a duty-free CPO
export quota is discontinued.
In the cash market, refined palm olein
for December shipment was offered at $772.50/ton, while cash CPO was
offered at MYR2,080/ton.
Open interest on the BMD was 175,484 lots, versus 181,015 lots Tuesday. One lot is equivalent to 25 tons.
A total of 34,987 lots of CPO were traded versus 41,296 lots Tuesday.
Ending BMD CPO futures prices in MYR/ton:
Month Close Previous Change High Low
Dec'12 2,112 2,100 12 2,129 2,112
Jan'13 2,208 2,218 -10 2,231 2,197
Feb'13 2,285 2,294 -9 2,312 2,275
Mar'13 2,350 2,357 -7 2,375 2,340
