Malaysian Derivatives Market >>> FCPO and FKLI closes higher

FCPO >>> Crude palm oil (CPO) futures prices in Bursa Malaysia Derivatives closed higher today on short covering ahead of the long weekend holidays, dealers said. "The short-covering exercise emerged yesterday on speculation that palm oil exports could pick up later this month after falling as much as 20 per cent in the September 1-15 period," said one of the dealers.

Cargo surveyor Intertek Testing Services reported yesterday that exports of Malaysian palm oil products for September 1 to 15 fell 20.3 per cent to 529,980 tonnes from 665,314 tonnes shipped from August 1 to 15.

Another cargo surveyor Societe Generale de Surveillance stated that exports of Malaysian palm oil products for the September 1-15 period dropped 19.3 percent to 538,200 tonnes from 667,176 tonnes a month earlier.

At the close today, the CPO futures for October 2009 rose RM61 to RM2,210per tonne, November 2009 increased RM88 to RM2,188 per tonne, December 2009 gained RM91 to RM2,181 per tonne and the newly traded January 2010 contractstood at RM2,181 per tonne. Volume was higher at 24,932 lots compared to 15,663 lots yesterday but open interest declined to 88,227 contracts from 88,689 contracts previously.

On the physical market, September South rose to RM2,230 per tonne from RM2,160 per tonne yesterday.

FKLI >>> The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures sustained its uptrend at the close Wednesday following sharp gains on US stocks and renewed optimism of a global economic recovery, dealers said.

September 2009 rose seven points to 1,218, October 2009 gained 7.5 points to 1,217, December 2009 increased nine points to 1,217 and March 2010 rose seven points to 1,211. Turnover rose to 4,768 lots from 2,602 Tuesday.

Open interests, however, fell to 16,589 contracts from 16,780 Tuesday. The underlying FBM KLCI on the cash market rose by 5.5 points to close at 1,212.98.