Malaysia palm oil futures held near a two-week high on Friday, continuing a recovery from a multi-year low hit last week on worries about economic growth in key consumer China. The benchmark November contract on the Bursa Malaysia Derivatives exchange gained 0.4 percent in intra-day trading to close at 2,031 ringgit ($477.21) a tonne.
Traded volume stood at 38,403 lots of 25 tonnes each, more than the 35,000 daily average. "There has been no further news to put prices lower so the technical correction is taking place," a Kuala Lumpur-based trader said, adding that he expects palm prices to inch up to 2,100 ringgit. "We will see this correction take place until next Thursday, when the Malaysian Palm Oil Board releases its August data." Palm prices have recovered more than 9 percent from the 6-1/2 year low of 1,863 ringgit reached last week.
Technical charts show palm oil may approach resistance at 2,074 ringgit a tonne, Reuters market analyst Wang Tao said. In competing vegetable oil markets, the US December soyoil contract was up 0.3 percent in Asian trade. China markets remained closed for a second day for a national holiday commemorating the end of World War Two.
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