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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

12/10/2001

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

Malaysia palm oil futures eye 982 rgt resistance
KUALA LUMPUR, Oct 11 (Reuters) - The following are factors likely toaffect the performance of Malaysian palm oil futures on Thursday.* Chicago Board of Trade soybean and soymeal futures closed lowerWednesday on technical selling and reports of a pickup in the U.S. harvestpace, while soyoil closed mixed, following this week's rally after Indiacut its base price of palm oils.CBOT soyoil futures closed up 0.05 cent per lb to down 0.07 cent per lb,with October up 0.05 cent at 15.32 cents and December unchanged at 15.49cents.* Technical analysts said short term outlook was positive in Malaysia'scrude palm oil futures, but the market has yet to break free from thebears."The market needs to break 982 ringgit in order to go up to 1,000ringgit," said one analyst in Kuala Lumpur."It doesn't mean the classic bear is over yet. Based on the currenttechnical indicators, the bearish trend is intact," he added.The analyst pegged support at 944 ringgit and major resistance at 982ringgit. Next resistance was seen at 1,010 ringgit.* In India, traders said that local importers are likely to increase palmoil buying in the next few months following the government's cut of baseimport prices.The reduction, announced on Tuesday, has resulted in a fall of 10 to 20percent in the effective import levies on palm oils, making imports moreattractive.India, the world's largest buyer of edible oils, is now likely to buy morethan the earlier estimated 400,000 to 450,000 tonnes in October, saidtraders.In Malaysia, palm oil futures ended sharply higher on Wednesday due tomarket-friendly export figures and India's move to cut base prices of palmoils.The benchmark third-month December palm oil contract was up 56 ringgit at973 ringgit ($256.05) a tonne after trading as high as 980 ringgit,slightly below key resistance of 986 ringgit.