BURSA MALAYSIA Derivative Markets >>> FKLI And FCPO 04 Jan 2010

KLCI Futures contracts ended higher and at premiums

The KLCI Futures contracts ended higher Monday, turning the last Thursday's discounts to premiums ranging from 4.2 to 7.7 points to the underlying.

The January 2010 contract closed 13.0 points higher to at 1,282.0 points, reversing its discount of 3.78 points last Thursday to a premium of 6.25 points.

The contract opened 6.5 points higher at 1,275.5 points and traded between 1,274.0 and 1,284.5 points during the day.

The February 2010 contract closed at 1,283.5 points on the first day of trading, representing a premium of 7.75 points. It opened at 1,275.5 points and traded between 1,274.5 and 1,284.5 points during the day.

The March 2010 contract closed 11.0 points higher at 1,280.5 points, which is a premium of 4.75 points to the underlying, while the June 2010 contract rose 9.5 points to 1,280.0 points, representing a premium of 4.25 points to the underlying.

Crude Palm Oil Ends Up On Higher Soyoil, Crude Oil

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday, tracking soyoil and crude oil futures in Asian trade, participants said.

Gains were capped due to concerns that end-December stocks would be higher than expected and that demand will taper off in coming months.

The benchmark March contract on the Bursa Malaysia Derivatives ended MYR17 higher at MYR2,680 a metric ton, after trading in between MYR2,665 and MYR2,698/ton.

At 1000 GMT, light, sweet crude for February delivery on the New York Mercantile Exchange was trading $1.65 higher at $81.01 a barrel.

January soyoil on the Chicago Board of Trade was trading 40 points higher at 40.75 cents a pound in electronic trading by the end of trade on the BMD.

"There is quite a bit of positive buying sentiment after last week's rally in CPO prices. But weak local fundamentals are starting to bite at buyers' heels," said a Kuala Lumpur-based trader.

He said some market players have been rushing to move Indonesian palm oil products into Malaysia before higher Indonesian export taxes imposed on those products take effect in January, which would boost December's end-month stocks.

Also, some traders said market participants are worried about waning demand, as shown by December's. "These are just fuzzy concerns at the moment, as traders are still working out data and numbers on what the situation would be this month," said another Kuala Lumpur-based trader.

The market expects a clearer picture to emerge by Jan. 10, when the Malaysian Palm Oil Board releases December export, stock and output data for December and cargo surveyors issue estimates for Jan. 1-10 exports.

"Until then, external cues, such as soyoil and crude oil, will play major roles in determining the direction of CPO prices," a Singapore-based trader said.

In the cash market, palm olein for January was traded at $810/ton, while April/May/June traded at $825/ton, free-on-board Malaysian ports, a Singapore-based trader said.
Cash CPO for prompt delivery was offered MYR30 higher at MYR2,630/ton.
Open interest on the BMD was 76,366 lots, down from 76,748 lots traded Thursday, before the New Year holiday. One lot is equivalent to 25 tons.
A total of 7,587 lots of CPO were traded versus 21,892 lots traded Thursday.