CPO Futures Rebound, Spurred By Steadier Soyabean...

Salam Tuan...

Quoted from Business Times, 12.8.2010;

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives rebounded to end higher yesterday, with sentiment spurred by firmer soyabean prices, dealers said. Both August 2010 and September 2010 rose RM26 each to settle at RM2,816 and RM2,731 a tonne, respectively. October 2010 gained RM7 to RM2,677 and November 2010 rose RM4 to RM2,656 a tonne . Overall, volume declined to 12,394 lots compared with 18,007 lots on Tuesday, while open interest declined to 63,685 contracts from 67,292 contracts previously. Of the physical market, August South added RM10 to finish at RM2,800 a tonne.

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Palm Futures End At Near 7-Month...

Salam Semua...

Quoted from Business Times, 10.8.2010;

CRUDE palm oil futures contracts on the Bursa Malaysia Derivatives closed at a near seven-month high on strong demand from China and concerns that a dry weather in the US could affect soya bean production, dealers said.

August 2010 rose RM78 to RM2,822 a tonne, September was RM65 higher at RM2,762, October gained RM70 to RM2,730 and November climbed RM69 to RM2,721 .

Turnover increased to 24,644 lots from 15,560 lots last Friday while open interest increased to 66,661 contracts from 66,617 last Friday. August delivery price traded at RM2,840 from RM2,680 last Friday.

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CPO Futures In Overbought Territory, Technical Correction Soon...

Salam Semua...

Quoted from Business Times, 09.8.2010;

The Kuala Lumpur Crude Palm Oil (CPO) futures market saw bullish action last week. The bull run was triggered off by the setting off of a bear trap, and ramped up by fierce and frantic short-covering. The October 2010 contract rose to an eight-month high, closing last Friday at RM2,661 a tonne, up RM144 or 5.72 per cent over the week.

The technicals had indicated the previous week that this market was prime for a technical rebound - and raring for bullish action. All it needed was a spark, and the market's fuse was lit for the lift-off. Some market observers saw the latest export estimates as the "spark" that sent prices rampaging up the price chart. Export monitors Societe Generale de Surveillance (SGS) and Intertek Agri Services' (IAS) July 1 to July 25 export estimates averaged 1.406 million tonnes, up 60,000 tonnes or 4.47 per cent compared to that of the similar period in June.

Buying and short-covering snowballed on market-inciting talk that Bangladesh would be buying in a big way to stock up on cooking oil ahead of the Hari Raya Puasa festive season, slated to start on September 10. But others saw the bull run in wheat prices, set off by drought and wildfires in Russia which has destroyed a fifth of its crop, as the real "spark".

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Palm Futures At 5-Month High, Its 4th Weekly...

Salam Semua...

Quoted from Business Times, 08.8.2010;

PALM oil reached the highest level in almost five months yesterday after a ban on grain exports by the drought- hit Russia sent prices of soybeans and corn soaring. October-delivery futures jumped as much as 2.9 per cent to RM2,695 a metric ton on the Malaysia Derivatives Exchange, the highest level since March 11. Prices have gained 6.4 per cent this week for the fourth straight weekly advance. “This year belongs to grains and oilseeds and oils will be no exemption,” Harish Galipelli, vice president at JRG Wealth Management Ltd., which advises traders, said by telephone from Hyderabad. “Weather disruption is going to set the market on fire for some time to come.”

Corn futures surged to 13-month high and soybeans extended a rally to the highest price since January after Russia halted grain exports Thursday. Corn jumped as much as 5.8 per cent, soybeans gained as much as 2.4 per cent, and wheat futures soared to a 23-month high on the Chicago Board of Trade Thursday. Palm oil has rebounded 18 per cent from a seven-month low on July 7 on speculation that demand may rise in Asian nations and futures will track advances in crude oil, soybeans and equities.

China, India, Pakistan and Indonesia mark festivals in the three months ending September, typically stoking edible-oils demand. Malaysia may have flooding in some of the main growing areas in November and December because of La Nina weather, the state forecaster said. La Nina may gain strength by the end of the year, bringing above normal rain in northern Sarawak and the state of Sabah, the Malaysian Meteorological Department said. Prices must jump to as high as RM3,200 to cool export demand as output declines in Malaysia and weather damages canola crops in Europe and Canada, Dorab Mistry, a director at Godrej International Ltd said Thursday. Malaysia’s production probably fell last month, lowering inventory, and is supporting prices, said Arhnue Tan, an analyst at ECM Libra Capital. Malaysian Palm Oil Board will release July’s production, inventory and export data next week.

“In the short term, weather will likely be the main driver of palm oil prices,” Tan Ting Min, a plantation analyst for Credit Suisse Group in Kuala Lumpur, said in a report. “If La Nina were to coincide with the monsoon at end-2010, palm oil harvesting could be disrupted due to flooding and heavy rainfall while extraction rates could fall.” Credit Suisse raised its estimate of the average palm oil price this year to RM2,600 from RM2,500 previously.

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Festive Demand Drives Up CPO Futures...

Salam Semua...

Quoted from Business Times, 06.8.2010;

CRUDE palm oil (CPO) futures ended firmer yesterday on Bursa Malaysia Derivatives driven by the festive demand for the

commodity against a backdrop of tight supply, dealers said. An analyst said prices could hover around RM2,650 per tonne due to supply constraints brought on by the El Nino phenomena and competition from close substitutes.

Crude palm oil moves in tandem with soyoil as they compete for similar export destinations. At close yesterday, August 2010 increased RM25 to RM2,700 per tonne, September 2010 rose RM13 to RM2,645 per tonne, October 2010 gained RM29 to RM2,619 per tonne and November 2010 added RM26 higher to RM2,613 per tonne. Volume surged to 17,144 lots yesterday, from 12,945 lots on Wednesday, and open interest declined to 67,272 contracts, from 68,584 contracts previously. On the physical market, August South was RM30 higher at RM2,710 per tonne..

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Palm Futures Higher On Hope Of Festive Demand

Salam Semua...

Quoted from Business Times, 05.8.2010;

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed higher yesterday with hope of festive demand and concern over the weather boosting sentiment, dealers said. "CPO prices hit a four-and-a-half month high yesterday," said one of the traders.He said that soybean prices surged on concern that dry weather would affect the commodity and this also gave a lift to CPO prices."With the Ramadan month approaching, harvesting is expected to slow down which may lead to a slight fall in this month's production," the trader said.

At close yesterday, CPO futures for August 2010 increased RM34 to RM2,675 per tonne, September 2010 gained RM39 to RM2,632 per tonne, October 2010 added RM28to RM2,590 per tonne and November 2010 was RM30 higher at RM2,585 per tonne. Volume dropped to 12,945 lots from 17,244 lots Tuesday and open interest declined to 68,584 contracts from 69,376 contracts previously. On the physical market, August South was RM40 higher at RM2,680 per tonne compared to RM2,640 per tonne Tuesday.

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Palm extends rally, climbs to 3-month high

Salam Semua...

Quoted from Business Times, 03.8.2010;

PALM oil futures rose to the highest level in more than three months yesterday after reports showed that sales from Malaysia, the second-biggest producer, gained last month.October-delivery futures advanced as much as 2.1 per cent to RM2,570 a metric ton on the Malaysia Derivatives Exchange, the highest level since April 27, and traded at RM2,565 at 5.15 pm in Kuala Lumpur. Prices added 6.1 per cent in July, the biggest monthly gain in five.

Palm oil exports from Malaysia climbed 4.4 per cent in July to 1,412,300 tons from a month earlier, market surveyor Intertek said July 31. Rival Societe Generale de Surveillance said sales gained 4.7 per cent to 1,402,317 tons last month. Crude oil rose to the highest in four days as Asian stocks rallied after China’s manufacturing rose in July, increasing the appeal of palm oil as a biofuel feedstock. September-delivery crude oil added as much as 0.7 per cent to US$79.53 a barrel on the New York Mercantile Exchange.

“Everything seems to be supportive for palm oil today,” said Ryan Long, a trader at OSK Investment Bank Sdn Bhd. “Better- than-expected exports from Malaysia and higher crude are all pointing to a firm trend. The only negative is a strong ringgit.”The ringgit rose to a two-year high on optimism investors will pump more funds into Asian assets as regional economies lead the recovery from a global recession, raising the cost for palm oil buyers. The currency advanced as much as 1 per cent to 3.1514 per dollar in Kuala Lumpur, according to data compiled by Bloomberg.

La Nina, which brings above-normal rainfall in Asia, can disrupt palm oil production in Indonesia and Malaysia, the top growers, and cause dry weather in North America, hurting soybean crops. Palm and soybean oils are substitutes and account for more than 60 per cent of global edible oils supplies and demand. “It has been raining in Malaysia and that’s adding to some concern about future production outlook,” OSK’s Long said. December-delivery soybean oil jumped as much as 1 per cent to 40.94 cents a pound and the vegetable oil’s premium over palm oil narrowed to US$88.48 a ton from US$105.8 on July 30, according to Bloomberg data. November-delivery soybeans rallied as much as 1.4 per cent to US$10.19 a bushel, the highest since April 26.

CME Group Inc.’s October-delivery palm oil contract, pegged to the Malaysian benchmark price, jumped as much as 2.4 per cent to US$811 a ton, the highest since the contract started trading in May. On the Dalian Commodity Exchange, January-delivery palm oil surged 2.5 per cent to 6,910 yuan (US$1,020) a ton, while soybean oil added 2 per cent to 7,842 yuan a ton.

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CPO futures likely to maintain uptrend...

Salam Semua...

Quoted from Business Times, 01.8.2010;

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives is likely to continue its upward momentum next week amid continuous demand from China, India, Pakistan and Indonesia, a dealer said.

These countries have begun purchasing the edible oil to meet the requirements of consumers during the Ramadhan month. Another key factor that is expected to drive prices is the weather condition. "This will be the biggest concern for the market for some time. "The rainy season could affect harvesting, hence, forcing prices to spiral," said another dealer of the impending monsoon season. He forecast crude palm oil prices to fetch between RM2,600 and RM2,700 per tonne next week.

"But given the good demand in the market, the price may breach RM2,800 per tonne," said the dealer. Meanwhile, cargo surveyors, Intertek Testing Service and Societe Generale de Surveillance are expected to unveil Malaysian's palm oil export data on Saturday and Monday, respectively. For the week just-ended, August closed RM31 higher at RM2,589 per tonne, September added RM28 to RM2,538 per tonne, October rose RM19 to RM2,517 per tonne and November was RM17 higher at RM2,512 per tonne. Total turnover for the week narrowed to 78,134 lots from 86,443 lots last week while open position rose to 68,905 contracts from 68,218 contracts previously. On the physical market, spot month August South was quoted at RM2,600 per tonne. -- Bernama

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