Monday, 4 July 2011

DJ Palm Oil News

0451 GMT [Dow Jones] BMD CPO futures are higher midday on mild technical
buying interest after last week's sharp fall; but the market could fall later in
week as traders focus on weak supply-side fundamentals. Market estimates put
June output +7% on month, with stocks pegged at 2.15 million tons. CPO may fall
to test MYR2,900/ton later this week, an 8-month low, a trading executive in
Karachi says; he he adds that a sharp price dip could lead to a "buying frenzy"
in the physical market and boost export demand. Benchmark September CPO is 1.5%
higher at MYR3,083/ton. Immediate resistance is at MYR3,090/ton.
(shie-lynn.lim@dowjones.com)