Asian palm oil markets seen mixed

Asian palm oil markets seen mixed

KUALA LUMPUR (Reuter): Asian palm oil markets were expected to
be mixed this week with bearish technicals seen dampening
Malaysian sentiment, while Singapore may recover due to a nearby
supply tightness, regional traders said.

In Indonesia, palm prices were expected to trend lower on
sustained weak demand, but downside could be limited by the
relatively high price of crude palm oil.

"Technically, palm still looks weak as May futures broke the
psychological level of 1,250 ringgit last week," a chartist in
Kuala Lumpur said.

Malaysia's third month futures contract, which closed on
Friday at 1,234 ringgit a ton, was expected to trade at the lower
ranges of between 1,200 and 1,250 ringgit this week.

However, Singapore traders were bullish, saying May futures
should be trading around 1,230 ringgit a ton. "We will see a test
of 1,270 to 1,280 ringgit," said a Singapore dealer for the
European trading house.

Tightness in nearby supply could help prices to remain firm,
traders said.

"The shortage is still there. Short-term through April, it's
still pretty tight," the Singapore trader said.

Another Singapore trader said soyoil's recent gains in the
Chicago futures market should also support the firm tone.

"The run-up in soyoil should keep prices in the positive side
of the ledger," the trader said.

One dealer said the low prices in the market may also tempt
major buyers like India or Pakistan to cover their positions.

"Prices are beginning to look interesting for buyers," the
dealer said.