BURSA MALAYSIA >>> FKLI AND FCPO Markets Overview 30 Dec 2009

FBM KLCI Futures Underpinned By Profit Taking & Softer Cash Market

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures on Bursa Malaysia Derivatives closed lower today in line with the easier cash market, dealers said.

At the close, December 2009 contract declined eight points to 1,270.0, January 2010 dropped nine points to 1,267.0, February 2010 was 7.5 points lower at 1,269.0 and June 2010 fell 8.5 points to 1,268.

Total volume increased to 9,366 lots from 8,971 lots yesterday while open interest advanced to 22,010 contracts from 21,209 contracts previously.

The underlying FBM KLCI closed 4.1 points lower at 1,271.12.

Crude Palm Oil Futures End Off Highs; Market Expects Lower Exports
Crude palm oil futures on Malaysia’s derivatives exchange ended up Wednesday, but gains were trimmed amid expectations that palm oil exports for December may be 15%-16% lower on month, trade participants said.

The benchmark March contract on the Bursa Malaysia Derivatives ended MYR5 higher at MYR2,595 a metric ton, after reaching an intraday high of MYR2,609, tracking modest gains on crude oil futures during Asian trading hours.

At 1000 GMT, light, sweet crude for February delivery on the New York Mercantile Exchange was trading 6 cents higher at $78.93 a barrel.

Traders said that Malaysia's palm oil exports in December may be 200,000 tons lower than November's 1.42 million-1.46 million tons.

"Exports are likely around 1.2 million tons, with purchases to India likely to be much lower, as the country made aggressive purchases in the last two months–when (benchmark futures) prices were hovering around MYR2,400-MYR2,500," said a Malaysia-based vegetable oil exporter.

Malaysia's palm oil exports to India were at 124,510 tons and 181,500 tons for October and November, respectively, according to data from cargo surveyor SGS (Malaysia) Bhd. showed–around double the usual monthly volume of 65,000-80,000 tons.

Cargo surveyors are expected to issue estimates of December palm oil shipments Thursday.

In the cash market, cash palm olein for January was traded at $780/ton, while April/May/June was traded at $800/ton, free-on-board Malaysian ports, said a Singapore-based trader.

Cash CPO for prompt delivery was offered MYR10 lower at MYR2,540/ton.
Open interest on the BMD was 79,032 lots, up from 78,620 lots Tuesday. One lot is equivalent to 25 tons.
A total of 6,414 lots of CPO were traded versus 9,629 lots traded Tuesday.