By Anuradha Raghu
KUALA LUMPUR, Nov 20 (Reuters) - Malaysian palm oil futures
ended higher on Wednesday, reversing losses in the morning
session after the tropical oil's losing streak stoked buying
interest, although prices were locked in rangebound trade.
Steady demand also supported. Cargo surveyor Intertek
Testing Services showed exports of Malaysian palm oil in Nov.
1-20 slipped 2.1 percent compared with volumes shipped a month
ago, as purchases from India and China cooled, but the declines
were less steep compared to the first half of November.
There was buying going on at the 2,545 ringgit levels which
caused the market to move upwards again, said a trader with a
foreign commodities brokerage. "But prices are still
range-trading."
"Although exports are still slightly down, you can see
exports in the second half of the month has improved compared to
the first ten days," the Kuala Lumpur-based trader added.
Another cargo surveyor Societe Generale de Surveillance
showed exports for the same period fell 7.2 percent to 975,011
tonnes compared to a month ago.
By Wednesday's close, the benchmark February contract
on the Bursa Malaysia Derivatives Exchange had edged up
0.9 percent to 2,579 ringgit ($811) per tonne. Prices in the
morning session had dipped to as low as 2,545 ringgit.
Total traded volume stood at only 33,662 lots of 25 tonnes
each compared with the average 35,000 lots.
Technicals showed a bearish target at 2,506 ringgit per
tonne remains unchanged for Malaysian palm oil, driven by a
downward wave c, said Reuters market analyst Wang Tao.
Palm oil demand typically loses steam in the last quarter of
the year as countries in the northern hemisphere turn colder --
the tropical oil solidifies in winter, making it a less
attractive option compared to other competing edible oils such
as soyoil.
While market players say the world's second-largest palm oil
buyer China will still import palm ahead of its January Lunar
New Year festival, investors are wary that Chinese buyers might
have booked shipments in September when prices were around 2,300
ringgit.
Palm products such as palm kernel oil could be supported as
dwindling supplies of coconut oil from typhoon-hit Philippines
could turn buyers to seek alternatives, but price-gains will
likely be limited, traders and industry officials said.
In other markets, Brent climbed back above $107 a barrel on
Wednesday while U.S. crude futures rose for a second day after
Federal Reserve Chairman Ben Bernanke's reassurance about
ultra-easy monetary policy continuing and on hopes of higher
U.S. oil demand.
In competing vegetable oil markets, the U.S. soyoil contract
for December rose 0.5 percent in late Asian trade. The
most active May soybean oil contract on the Dalian
Commodities Exchange rose 0.3 percent.
Palm, soy and crude oil prices at 1023 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC3 2583 +21.00 2550 2585 118
MY PALM OIL JAN4 2578 +21.00 2547 2595 4878
MY PALM OIL FEB4 2579 +23.00 2545 2596 16855
CHINA PALM OLEIN MAY4 6268 +34.00 6192 6270 605918
CHINA SOYOIL MAY4 7184 +18.00 7138 7186 699338
CBOT SOY OIL DEC3 40.18 +0.19 40.00 40.31 7228
NYMEX CRUDE DEC3 93.22 -0.13 93.21 93.72 1775
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
