Thursday, 7 July 2011

DJ Market Talk Palm Oil News

[Dow Jones] BMD CPO futures are likely to open up MYR5-MYR10, in step with a marginal rise in Chicago soyoil, a commodities broker in Kuala Lumpur says; but China's late Wednesday interest rate hike and bearish supply-side fundamentals may reverse the gains in later trade; from a technical perspective, "prices are likely to slip below a chart-based support of MYR3,015 a ton later today as the record increase in open interest is a negative long-term indicator for price trend," says S. Paramalingamat Kuala Lumpur-based brokerage Pelindung Bestari. BMD CPO open interest hits a record high of 130,833 lots vs 125,009 lots Wednesday. Benchmark September CPO ended 0.4% lower at MYR3,029/ton Wednesday. December CBOT soyoil ended +0.3% at 56.39 cents/lb.