BMD Crude Palm Oil and FBM KLCI Futures Markets 19 Oct 09

Crude Palm Oil Ends Up On Exports; Weak Crude Caps Gains

Crude palm oil futures on Malaysia derivatives exchange ended higher Monday on expectations of an increase in exports, but weak crude oil futures during the late afternoon trimmed earlier gains, said market participants.
The benchmark January contract on the Bursa Malaysia Derivatives ended MYR19 higher at MYR2,197 a metric ton, off an intraday day high of MYR2,217/ton.

Market participants expect Malaysia Oct. 1-20 palm oil exports to reach 850,000-869,000 tons, or 1.4%-3.7% higher than the estimated 797,929-837,656 tons shipped during the same period last month.
Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. are expected to issue separate estimates of Oct. 1-20 palm oil exports on Tuesday.
Although the export estimates are expected to be higher, participants said the increase won't be substantial enough to boost CPO prices significantly, especially after crude oil futures started to decline and moved into negative territory towards the end of the BMD trading day.

"(Palm oil) production over the last month is expected to increase by 10% so that negates any gains made by exports," a Singapore-based trader said.
New York Mercantile Exchange light, sweet crude oil futures were down $0.28 at $78.25 a barrel as of the end of trade on the BMD Monday.
Trade was thin in the cash market as India, a major buyer of vegetable oil, was closed for a national holiday.

The lack of activity in the cash market, coupled with moderately bullish expectations for the export data, resulted in rangebound trading on the BMD, with CPO prices unable to hold above MYR2,200/ton, a Kuala Lumpur-based trader said.

The level provides significant psychological resistance, which if broken convincingly would have triggered a technical uptrend in prices, the trader said.
In the cash market, cash palm olein for November/December shipment traded at $690/ton, free-on-board Malaysian ports, a Singapore-based trading executive said.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,200/ton.
A total of 16,357 lots of CPO were traded on the BMD versus 19,830 lots Friday.
Open interest stood at 91,814 lots, up from 85,898 lots. One lot is equivalent to 25 tons

FBM KLCI Futures Close Higher

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures closed higher Monday in line with the uptrend on the cash market, dealers said.

At close, the spot month October 2009 contract rose 2.0 points to 1,265.0, November 2009 increased 3.0 points to 1,265.0, December 2009 advanced 5.0 points to 1,265.0 and March 2010 added 3.0 points to 1,264.5.

Turnover dropped to 4,086 lots from 4,324 lots last Friday while open interest rose to 16,944 contracts from 16,460 contracts previously. The underlying FBM KLCI was up 4.72 points or 0.376 per cent to close at 1,261.49, another new high for the year.