KUALA LUMPUR, April 27: Malaysian crude palm oil futures closed steady to slightly lower on Thursday, on profit taking amid worries of rising ringgit currency, traders said.
The major concern is the currency, said one. The ringgit hit 8-year highs on Thursday as a surprise interest rate rise the previous day boosted expectations for further increases.
The ringgit strengthened to 3.6300 against the dollar, its strongest level since May 1998, taking its gains this year to just over four per cent.
Palm oil buyers were also not willing to commit much ahead of cargo surveyors ITS and SGS export data for April, due on May 2. The market is closed on Monday for a May Day holiday.
The benchmark third-month July contract on the Bursa Malaysia Derivatives was unchanged at 1,473 ringgit ($405.78) a ton, after trading as high as 1,480. Other traded months were unchanged to four ringgit down. Overall volume stood at 6,546 lots of 25 tons each, against Wednesday’s 6,411 lots.
In physical trade, April crude palm oil was offered at 1,430 ringgit a ton in both central and southern regions, against bids of 1,425 ringgit. Trades were done at 1,425 ringgit in the southern region and 1,425-1,430 ringgit in central.—Reuters
