Derivatives Market >>> FKLI and FCPO Close Higher 13 Nov 2009

FBM KLCI: Futures Close Higher
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures contracts on Bursa Malaysia Derivatives retained their upward trend at close on Friday, despite the weaker cash market, dealers said.

The KLCI futures for the November 2009 contract rose 4.5 points to settle at 1,273.0 and the December 2009 contract perked up 4.0 points to 1,273.5.

The March 2010 and June 2010 contracts advanced 2.5 points each to 1,277.0 and 1,279.0, respectively.

The day's volume however, was lower at 3,747 lots compared with Thursday's closing of 4,244 lots while open interests declined to 16,719 contracts versus 17,175 contracts previously.

On the cash market, the underlying FBM KLCI closed 0.79 of a point lower at 1,270.96.
Crude Palm Oil (CPO) Futures End Up On Demand Outlook, Higher Crude

Crude palm oil futures on Malaysia's derivatives exchange rose for a second consecutive day Friday as an improved demand outlook and higher crude oil prompted speculative buying interest, said trade participants.

An active cash market in the afternoon session boosted prices as a large trading company "was actively buying palm products," said a Singapore-based trader.

The benchmark January contract on the Bursa Malaysia Derivatives ended MYR23 higher at MYR2,268 a metric ton after trading in a narrow range.

Prices were slightly choppy, moving in both positive and negative territory in the early session. But they moved convincingly higher in the afternoon session on talk of a likely rise in exports, trade participants said.

"Exports may have risen 9%-10% to 650,000 tons" in the first 15 days of November, said a senior trading executive from Kuala Lumpur.

Cargo surveyor Intertek Agri Services put Oct. 1-15 palm shipments at 596,515 tons. Another surveyor, SGS (Malaysia) Bhd., put the figure at 591,791 tons. Both surveyors are expected to issue estimates Monday.

A rebound in crude oil prices during Asian trading hours due to a weaker dollar was the catalyst for CPO's price gain.

At 1000 GMT, Nymex light, sweet crude for December delivery was trading 54 cents higher at $77.48 a barrel on Globex.

"The weakness in the dollar is likely to continue in the next few trading sessions, so commodity prices may be poised for some gains next week," said a Malaysia-based exporter.

Meanwhile, Indonesia's PT Perkebunan Nusantara said it sold 4,500 tons of crude palm oil offered in a government auction Friday.

Another 5,000 tons of CPO that was offered at the auction remained unsold, as bids were below PTPN's offer prices of IDR6,388-IDR6,551/kg.

In the cash market, cash palm olein for April/May/June was traded several times at $715/ton, free on board Malaysian ports, said a Singapore-based trader.

Cash CPO for prompt shipment was offered MYR20 lower at MYR2,200/ton.
A total of 12,876 lots of CPO were traded on the BMD versus 15,456 lots Thursday.
Open interest stood at 96,400 lots Friday, up from 94,523 lots. One lot is equivalent to 25 tons.