Technical covering boosts Malaysia palm oil futures

Technical covering boosts Malaysia palm oil futures

KUALA LUMPUR (Reuters): Malaysian palm oil futures rebounded from early lows and closed mostly higher on Friday on prospects of lower production this month and news of cooperation between Malaysia and Indonesia to lift the depressed world prices.

"It's all technical covering after the market managed not to break the 750 ringgit support level on the downside. There was a lot of covering as well as speculative buying," said one trader in Kuala Lumpur.

Benchmark third-month May rose 11 ringgit to 772 ringgit ($203.15) a ton. Volume was 1,305 lots.

RBD palm olein was being offered at a $60/ton discount compared with South American crude, degummed soyoil for February/March on an FOB basis.

February (south and central) crude palm oil was offered at 720 ringgit a ton against bids of 710 ringgit and trade at 710 to 715 for south and at 715 for central.

March (south and central) saw offers at 745 against bids of 735 and deals reported at 740 for south and at 735 to 740 for central.

Among refined products March RBD palm oil was offered at $212.50 a ton FOB and April at $215. There were offers for March RBD olein at $220 and April at $222.50

March RBD palm stearin was offered at $187.50 and March palm fatty acid distillate at $170.