950816

Malaysian

palm oil

steady

KUALA LUMPUR: Malaysian palmoil prices closed steady in a technical bounce after sharp losses on Tuesday, but traders said near-term upside is seen limited following a bearish crop report from the Palm Oil Registration and Licensing Authority (PORLA).

"I don't think the market has got over the PORLA numbers," said a trader. "As you can see, prices are struggling to hold on to their gains."

PORLA on Tuesday released larger than expected palmoil production and stock figures for July, sending palm prices reeling.

Traders said palmoil stocks are likely to build up further in coming months as Malaysia enters its peak production period.

Unless export demand picks up, palmoil prices are seen heading for a consolidation phase.

New third position, Nov, crude palmoil futures ended unchanged at 1,316 ringgit ($532) a tonne.

Volume on the futures market was 1,770 lots, down from 2,086 lots on Tuesday.

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

Activity on the physical market was again confined to products.

Aug RBD palm olein was offered at $625 a tonne FOB Malaysia, Sep at $612.50 and Oct at $605. Sep was traded at $610/$607.50 and Oct at $605/$600.

Aug RBD palmoil saw offers at $605, Sep at $590 and Oct/Nov/Dec at $585. Sep was done at $587.50/$590.

Aug RBD palm stearin noted sellers at $500 and Sep at $490. Sep/Oct palm fatty acid distillate were offered at $420.

PALMOIL FUTURES : Prices ended steady in a technical bounce after sharp fall yesterday. Trading was cautious with a bearish PORLA crop report released on Tuesday seen limiting the upside.

PALMOIL PHYSICALS : Prices held at around yesterday's levels in very thin activity. Interest again confined to products.

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

Aug 1390/1420 ba 1410/1415 (south)

Sep 1355/1385 ba

Oct 1330/1360 ba

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

RBD PALM OIL

Aug 605 seller

Sep 590 seller 587.50/590 traded

Oct/Nov/Dec 585 seller

RBD PALM OLEIN

Aug 625 seller

Sep 612.50 seller 610/607.50 traded

Oct 605 seller 605/600 traded

RBD PALM STEARIN

Aug 500 seller

Sep 495 seller 490 traded

Oct 485 seller

Rest unquoted.-Reuter