CPO Slower Export Soften Market; FBM KLCI Futures Falls

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower yesterday as investors loosened their positions on concerns over slowing exports, dealers said.
Cargo surveyors, Societe Generale de Surveillance (SGS) and Intertek Testing Services (ITS) also yesterday released reports on export of Malaysian palm oil products for August. SGS said that the export of palm oil for August reduced by 7.9 per cent to 1.298 million tonnes compared to the 1.409 million tonnes in July.
Meanwhile, ITS reported a 4.9 per cent fall in export for August to 1.332 million tonnes, from 1.401 million tonnes the previous month. The market was closed yesterday for the National Day holiday.

The CPO futures for September 2009 fell RM45 to RM2,395, October 2009 decreased RM46 to RM2,335, November 2009 went down RM67 to RM2,303 and December 2009 declined RM64 to RM2,296. Turnover jumped to 16,801 lots from 13,584 lots last Friday while open interests edged down to 84,342 contracts from 84,990 contracts.

On the physical market, September South reduced to RM2,405 per tonne from RM2,460 last Friday.

FBM KLCI Futures

FBM KLCI futures ended lower in line with the easier cash market, dealers said. Spot month September shed 3.5 points to 1,165.5, October was flat at
1,164.0, December slipped 3.5 points to 1,160.5 and far month March 2010 declined four points to 1,154.0.