“Traders are waiting for MPOB and exports data for more clues. Hopefully we will be able to see a clearer direction then. The market is facing a resistance level around 2,300 ringgit and support at 2,250 ringgit,” said a trader with a local commodities brokerage in Kuala Lumpur. The benchmark July contract on the Bursa Malaysia Derivatives Exchange closed nearly flat at 2,288 ringgit ($770) per tonne, after trading in a 2,271 to 2,292 range. Prices climbed as high as 2,294 ringgit on Wednesday, a level last seen on April 30.
Total traded volumes stood at 20,076 lots of 25 tonnes each, lower than the average 35,000 lots. Technicals showed palm oil faces a resistance at 2,295 ringgit per tonne, and only a break above that level could lead to a further gain to 2,335 ringgit, said Reuters market analyst Wang Tao. Malaysian exports fell 5.6 percent in April from a month ago, according to cargo surveyor Societe Generale de Surveillance. Surveyor Intertek Testing Services reported a 4.3 percent decline for the same period. In vegetable oil markets, US soyaoil for July delivery gained 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange lost 0.4 percent.