Crude palm oil futures on Malaysia’s derivatives exchange rose for the fourth consecutive day Wednesday, fueled by hopes for improved exports and a broad rally in commodities markets, trade participants said.Prices fell off the intraday high of MYR2,196 a metric ton to close at the intraday low, however, as investors rushed to take profits towards the close.
The benchmark December contract on Bursa Malaysia Derivatives finished MYR3 higher at MYR2,160/ton.
Malaysia’s palm oil exports are improving and the Oct. 1-15 figures are likely to be around 595,000 metric tons, higher than in the same period last month, giving support to prices in the near term, traders said.
Malaysia’s palm oil exports are improving and the Oct. 1-15 figures are likely to be around 595,000 metric tons, higher than in the same period last month, giving support to prices in the near term, traders said.
“The (palm oil) shipments have been improving in the past few days and we’re anticipating exports to China and Pakistan to rise further,” a Malaysia-based exporter said. Prices held above Tuesday’s close despite the late profit-taking, however, as crude oil, soyoil futures rallied during Asian trading hours.New York Mercantile Exchange light, sweet crude for November delivery was trading 74 cents higher at $74.89 a barrel at 1017 GMT, off an intraday high of $75.15 a barrel.
Near the close on the BMD, Chicago Board of Trade November soyoil was up 23 points at 36.29 cents a pound.
“If crude oil is able to sustain at the $75 level, CPO prices may move higher in the near term, rebounding to above MYR2,200,” an executive at a Kuala Lumpur-based trading firm said.
“If crude oil is able to sustain at the $75 level, CPO prices may move higher in the near term, rebounding to above MYR2,200,” an executive at a Kuala Lumpur-based trading firm said.
Cargo surveyor Intertek Agri Services estimated exports during the Sept. 1-15 period at 529,980 tons, while SGS (Malaysia) Bhd. put the figure at 538,200 tons. Both cargo surveyors are likely to issue data for the Oct. 1-15 period on Thursday. China and India, both major buyers of vegetable oils, announced record imports for vegetable oils in September, as declining commodity prices spurred buying interest.
China’s September vegetable oil imports rose 47% from a year earlier to 970,000 tons, its largest volume so far this year. Mumbai-based vegetable oils industry lobby group Solvent Extractors Association said Wednesday it has estimated vegetable oil imports in September at 905,152 tons, the highest level so far this year, comprising mainly palm oil purchases.
The industry body put September palm oil imports at 544,091 tons, up from 334,334 tons a year earlier.
“Palm oil imports (to India) may slow down in the coming months between November and January as domestic availability of oils will increase,” Govindlai G. Patel, managing partner of Mumbai-based vegetable oil importer Dipak Enterprise said via telephone.
China’s September vegetable oil imports rose 47% from a year earlier to 970,000 tons, its largest volume so far this year. Mumbai-based vegetable oils industry lobby group Solvent Extractors Association said Wednesday it has estimated vegetable oil imports in September at 905,152 tons, the highest level so far this year, comprising mainly palm oil purchases.
The industry body put September palm oil imports at 544,091 tons, up from 334,334 tons a year earlier.“Palm oil imports (to India) may slow down in the coming months between November and January as domestic availability of oils will increase,” Govindlai G. Patel, managing partner of Mumbai-based vegetable oil importer Dipak Enterprise said via telephone.
Shipments to India may fall to 400,000-450,000 tons during the November-January period, another Mumbai-based importer said, as palm oil tends to solidify in cold weather.
In the cash market, cash palm olein for January/February/March and April/May/June were both traded several times at $680/ton and $690/ton, says Singapore-based trading executive.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,210/ton.
A total of 17,525 lots of CPO were traded on the BMD, versus 26,723 lots Tuesday. Open interest stood at 87,896 lots, up from 89,101 lots. One lot is equivalent to 25 tons.
In the cash market, cash palm olein for January/February/March and April/May/June were both traded several times at $680/ton and $690/ton, says Singapore-based trading executive.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,210/ton.
A total of 17,525 lots of CPO were traded on the BMD, versus 26,723 lots Tuesday. Open interest stood at 87,896 lots, up from 89,101 lots. One lot is equivalent to 25 tons.
FKLI >>> FBM KLCI Futures
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures ended higher on Wednesday in line with the stronger cash market.
The October 2009 contract rose 17 points to 1,251.5 while November 2009 and December 2009 increased 16.5 points each to 1,251.5 and 1,251.0 respectively and March 2010 gained 18 points to 1,251.0. The day's turnover increased to 4,081 lots from 2,213 lots yesterday while open interest rose to 16,114 contracts from 15,546 contracts. The underlying FBM KLCI closed 13.33 points higher at 1,246.84.
HAPPY TRADING2ALL
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