KL palm oil ends higher on weekend covering

KL palm oil ends higher on weekend covering

KUALA LUMPUR (Reuters): Malaysian palm oil ended mostly higher on weekend covering on Friday despite poor export figures and the arrival of soyoil from the United States, Argentina and Brazil in Asian markets, trader said.

"It's all about weekend covering. The outlook is not good at all because exports will be poor in the coming months," said one trader in Kuala Lumpur.

Another said: "The rupiah is falling. No wonder the Indonesians are selling their oil aggressively."

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said Malaysian palm oil exports in the first 20 days of April were 562,781 tons against 579,032 in the same period of March.

The benchmark third-month July contract rose five ringgit to 788 ringgit ($207.36) a ton after trading as high as 792 ringgit. Volume was heavy at 1,896 lots.

Traders said combined soyoil exports from the United States, Argentina and Brazil reached 440,000 tons in March, 72 percent higher than in the same month in 2000.

India took 99,000 tons, against 39,000 in March last year, while Bangladesh took 75,000 against 80,000. Egypt bought 31,000 tons against 21,000 in March 2000.

Traders said total soyoil imports by Asian countries, including India, China, Bangladesh, Iran, Pakistan and Turkey, reached 275,000 tons in March compared with 224,000 in March last year.

Physical April crude palm oil for the southern region was offered at 770 ringgit a ton against bids at 765, and traded at 770. April (central) saw offers at 765 against bids of 760, and trade was reported at 765.

May crude palm oil (south) saw offers at 775 ringgit a ton against bids of 770, and trade was reported at 770. May crude palm oil (central) saw offers at 770 ringgit against bids of 765 and there was no business.