KUALA LUMPUR, Feb 15 (Reuters) -
Malaysian palm oil futures climbed on Friday on positive export data, with
investors cautious ahead of the weekend and a lack of cues from overseas
markets capping gains.
Prices were still headed for their
first weekly loss in five weeks as investors waited for a government decision
to determine the crude palm oil export tax in March, due later in the day. The
current zero-percent duty has made Malaysia's products cheaper than top
producer and biggest rival Indonesia.
Exports of palm oil products in the
first half of February grew 18 percent from the first half of January to
673,555 tonnes, cargo surveyor data showed, boosted by strong demand from major
edible oil buyers Europe, China and India.
Shipments of the crude grade doubled
during the period compared to the previous month's first two weeks.
Total traded volumes stood at 12,050
lots of 25 tonnes each, slightly lower than the average of 12,500 tonnes.
The export data should hold the
market above 2,500 ringgit, said a trader with a foreign commodities brokerage
in Malaysia, adding that there was a possibility of a small rise in the March
export tax.
"The important thing is whether
the tax can create demand," he said. "There could be a prompt demand
from India and China -- especially from India who buys a lot of crude palm
oil."
Technical analysis showed palm oil
is expected to hover above a support at 2,493 ringgit per tonne for one trading
session before breaking this level and falling more.
Tepid global economic conditions
have slowed edible oil demand and kept stockpiles stubbornly high in Malaysia,
the world's No.2 palm oil producer, with prices tumbling 23.2 percent last
year.
A zero-percent duty tax structure
introduced by Malaysia in January provided positive sentiment for investors,
but forecasts of bumper soy crops in Latin America, palm's vegetable oil
competitor, has weighed on the market and kept prices rangebound.
"For the past few months, high
stockpiles and improving weather conditions in Brazil and Argentina have
continued to weigh on prices," said Phillip Futures analyst Ker Chung Yang
in Singapore. "But on the flip side Malaysia and Indonesia have
aggressively engaged in activities to support exports."
Crude palm oil prices will continue
to be rangebound between 2,200 and 2,600 ringgit as investors await further
cues, he said.
Another cargo surveyor, Societe
Generale de Surveillance, was to release its exports data for Feb. 1-15 later
in the day.
Brent crude steadied around $118 per
barrel, still heading for its first weekly loss in five after disappointing
euro zone data revived concerns about the troubled region.
In competing vegetable oil markets,
U.S. soyoil for March delivery BOH3
inched down 0.1 percent in early Asian trade. The Dalian Commodity Exchange is
closed for the Lunar New Year holidays and will resume trading on Monday.
