Wednesday, 6 July 2011

DJ Market Talk Palm Oil News

BMD CPO futures are marginally higher after moving
both ways; investors seeking direction amid concerns about burgeoning supplies
in the coming months and offsetting expectations of strong export demand because
of a wide discount to competing soyoil, traders say. Still, the market is
unlikely to sustain rally, as "I believe prices are likely to decline to a
support level of MYR2,950/ton in the near-term," says a technical analyst in
Kuala Lumpur. Benchmark September contract is trading 0.2% higher at
MYR3,047/ton. (shie-lynn.lim@dowjones.com)