950817

Malaysian

palm oil

ends higher

PALMOIL FUTURES: Prices ended higher as buying increased in the afternoon amid covering by refiners for physical prompt oil. Rise was also attributed to technical adjustment after sharp fall on Tuesday and talk of India's tender next week. But trading volume remained thin.

PALMOIL PHYSICALS: Prices were steady with focus on prompt crude palm oil and products.

KUALA LUMPUR: Malaysian palmoil prices closed higher on increased buying in the afternoon and covering by refiners for physical prompt oil, traders said.

They said talk that India's National Dairy Board will tender for Malaysian palmoil next week also helped sentiment.

"Players were seen stepping up buying in the afternoon on hearing the Indian rumours," said a trader. He said refiner covering for earlier sales was likely to continue tomorrow.

Traders also attributed the rise to further technical adjustment after a sharp fall on Tuesday which followed a bearish PORLA crop report.

But trading activity remained limited with players still cautious about taking large positions amid concern over the stock situation.

Malaysian palmoil stocks are likely to build up in coming months as the country enters its peak production period.

Third position Nov crude palmoil futures ended up 14 ringgit at 1,330 ringgit ($533) a tonne.

Volume on the futures market was 1,573 lots against 1,770 on Wednesday.

Activity in the physical sector was focused on prompt crude palm oil and products.

Physical Aug crude palm oil (south) was last offered at 1,420 ringgit ($569) a tonne after trading at 1,415 ringgit.

Among products, Sep RBD palm olein was offered at $617.50 a tonne FOB Malaysia, Oct at $612.50 and Oct/Nov/Dec at $612.50. Sep was traded at $610 and Oct at $605.

Sep RBD palmoil saw offers at $595, Oct at $590 and Oct/Nov/Dec at $590. Sep was done at $590 and Oct/Nov/Dec at $585.

Aug RBD palm stearin noted sellers at $505, Sep at $495 and Oct at $490. Sep/Oct palm fatty acid distillate were offered at $422.50.

(Prices in Ringgit/Tonne local delivery/Crude, Bulk)

Aug 1395/1420 ba 1415 (south) 1400 (central)

Sep 1380/1410 ba

Oct 1355/1375 ba

(Prices in US dlrs/Tonne local for Malaysian ports,Bulk)

RBD PALM OIL

Sep 595 slr 590 traded

Oct 590 slr

Oct/Nov/Dec 590 slr 585 traded

RBD PALM OLEIN

Sep 617.50 slr 610 traded

Oct 612.50 slr 605 traded

Oct/Nov/Dec 612.50 slr 603.50/605 traded

RBD PALM STEARIN

Aug 505 slr

Sep 495 slr

Oct 490 slr

Rest unquoted.-Reuter