960425

Malaysia palm oil off day's lows

KUALA LUMPUR: Palm oil prices ended off the day's lows on covering after falling earlier due to lower prices being offered to Pakistan, traders said.

Uncertainty over the outcome of Pakistan's tender also cautioned market sentiment, they said.

Traders said the lower April 1-25 palm oil exports, released by SGS (M) Sdn, also weighed on prices.

"Some covering was seen towards the close to lift prices from the day's lows," a dealer said. "Some nervous selling emerged in the afternoon as offered prices to Pakistan were seen low," he said.

Pakistan is tendering to buy 18,000 tonnes of RBD palm oil and 9,000 tonnes of RBD palm olein for first half May shipment.

Wilmar Trading offered RBD palm oil to Pakistan at $552.25 a tonne, Felda at $565.00 a tonne and Cargill at $565.69 a tonne.

Pakistan also received an offer for $584.25 a tonne for palm olein from Wilmar.

There was news from Pakistan on wednesday that it is only likely to buy 6,000 tonnes of RBD palmoil and 3,000 tonnes of RBD palm olein after prices in Malaysia shot up at Wednesday's close on the Pakistan tender news.

"I think that Pakistan may not buy much because of the high prices. People are liquidating their positions because of Pakistan's consideration of cutting the quantity if Malaysian prices go up today," another dealer added.

Trading was cautious with morning sentiment also affected by a weak close in Chicago soy a oil futures overnight, despite purchases by Egypt on Wednesday.

Traders here said Egypt bought 10,000 tonnes of RBD palm olein at $589 a tonne for first half July arrival.

Cargo surveyor, SGS said palm oil epxorts for April 1-25 were at 397,458 tonnes against March 1-25's 468,366.

Volume picked up due to increased selling interest and turnover at close was 1,811 lots against 901 on Wednesday.

Third month, July futures, which traded in a 21-ringgit range, ended at 1,269 ringgit ($506.99) a tonne, down eight ringgit from Wednesday. Dealers said the next resistance level for the contract remains at 1,280 and support at 1,250.

In refined products, May RBD palm oil was offered at $537.50 a tonne FOB Malaysia, June at $535 and July/Aug/Sep at $535.

Traders said May RBD palm olein was offered at $567.50, June at $565 and July/Aug/Sep at $557.50.

May RBD palm stearin noted offers at $435 and June at $432.50. May/June palm fatty acid distillate saw sellers at $350. PALMOIL FUTURES

PALMOIL PHYSICALS July (3rd pos) 1,269 rgt/tonne

April south 1,290 Hi/low

1.273/1,252

Prev close 1,305 prev settlement 1,277 sellers prices

PALMOIL FUTURES - Prices ended lower in cautious trading as offered prices to Pakistan were low. Uncertainty about the outcome of Pakistan's tender also cautioned the market. SGS's April 1-25 export data also eased sentiment. Trading volume picked up due to selling.

PALMOIL PHYSICALS - Moved in tandem, with Egypt's buying not helping sentiment. Interest was seen among refined products. (Prices in Ringgit/tonne local delivery/Crude, Bulk)

BID/ASK

TRADES Apr/May 1285/1290

1282.50/1287.50 (south)

1265/1275 (north) June

1285/1290

1285 (south) (Prices in US dlrs/Tonne local for Malaysian ports,Bulk)

RBD PALM OIL May

537.50

seller traded 531/532.50 June

535

seller traded 530/532/532.50 July/Aug/Sept 535

seller

RBD PALM OLEIN May

567.50

seller traded 557.50/559/560 June

565

seller traded 556/560 July

560

seller

RBD PALM STEARIN May

435

seller June

432.50

seller

PALM FATTY ACID DISTILLATE May

350

seller June

350

seller PALMOIL CRUDE SUMATRAN/MALAYSIAN SLRS OPTIONS

CIF ROTTERDAM DLRS A TONNE -1100 GMT May

570

seller June

seller 565

seller July/Sept

555

seller