The Star

Tuesday - December 25, 2007

by Loong Tse Min

Petaling Jaya

Crude palm oil (CPO) futures prices climbed to their highest in a month, supported by high global crude oil prices of above US$93 a barrel and rising wheat prices, which is expected to take acreage away from soybean farmers in the United States.

The US soybean crop, used mainly for the production of soybean oil – a direct substitute for CPO in food and confectionary manufacturing – is a strong driver of the CPO price.

The three-month CPO futures contract for March delivery closed at the day’s high of RM3,030 a tonne yesterday, just RM38 off the record intra-day high of RM3,068 reached in November.

Meanwhile, Bloomberg reported that customs data in China showed a surge in soybean oil imports in November due to a…

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Business Times

Tuesday - December 25, 2007

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives Bhd closed firmer yesterday due to lower supply caused by the current rainy season, dealers said.

A dealer said the floods that hit certain areas in Peninsular Malaysia and Sarawak has also affected the supply chain in the country.

The uptrend of soyabean prices on the Chicago Board of Trade also influenced the movement of the CPO.

The prices of the two commodities always move in tandem as they compete for similar export markets.

The market will be closed today for Christmas.

At close, Jan 2008 increased RM37 to RM3,015 per tonne, Feb 2008 advanced RM36 to RM3,026 per tonne, March 2008 gained RM38 to RM3,030 per tonne and April 2008 was RM37 higher at RM3,024.

Volume increased to 4,693 lots from 3,841 lots last Friday while open interest decreased to 40,615…

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Tuesday, December 25, 2007
KUALA LUMPUR: Malaysian crude palm oil futures rose further on Monday, gaining 1.3 per cent as higher prices of rival soybean oil and lower supplies from plantations hit by floods boosted the market.

An increase in exports announced by cargo surveyors also supported palm oil prices, which are just 38 ringgit off a record high of 3,068 ringgit a tonne hit in November. The benchmark March contract on the Bursa Malaysia Derivatives Exchange finished up 38 ringgit at 3,030 ringgit($908) a tonne.

“Higher soyoil and crude oil hovering around $93-$94 a barrel are supporting the market,” said one trader. “The weather and the demand are helping prices to stay higher but the question is that is there a scope for more gains? I think it will all depend on the weather in the coming days.”

The situation in flood-hit central Pahang and eastern Kelantan…

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Business Times

Monday - December 24, 2007

 
This is because the March 2008 contract will have to decisively punch above the RM3,050 a tonne overhead resistance level

OBSERVATIONS: The Kuala Lumpur CPO futures market scaled higher ground last week, levitated by the rising waters of the floods in the main oil palm-growing areas in Peninsular Malaysia.

The actively-traded March 2008 contract leaped RM74 or 2.53 per cent last week, settling on Friday at RM3,000 a tonne.

Thus far, the floods, nature’s wrath manifesting itself by the lashings of an unusually violent North-East Monsoon, have claimed some 30 lives and displaced some 34,000 people.

The worst is yet to come, say the weathermen who predict a second huge wave of floods in the near future. And if you believe the weathermen, the inference would be that the best is yet to come for this market…

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The Star

Monday - December 24, 2007

by G. M. Teoh

CRUDE PALM OIL 

Crude palm oil futures prices at the Bursa Malaysia Derivatives ended the week higher on short covering and speculative buying inspired by talk that crude palm oil production in December is likely to fall by about 15% to 18%.

Floods and heavy rains have affected plantations in most key producing states, halting harvesting of fruits, hampering transportation and causing fresh fruits bunches to rot.

The Meteorological Department’s “red alert” on renewed heavy rainfall issued last Friday helped boost sentiment.

Improved palm oil exports of Malaysian palm oil from Dec 1-10 provided some positive influence.

Societe Generale de Surveillance pegged exports higher by 1.4% at 964,090 tonnes from 950,983 tonnes in the same period in November.

The March futures prices recovered from a weekly low of RM2,933 and hit a weekly high at…

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By Nor Faridah Abdul Rashid

ABU DHABI, Dec 22 (Bernama) — Palm oil is currently providing the best option for a natural and healthy substitute for trans fats worldwide, Malaysian Palm Oil Council regional director (West Asia) Ahmad Zafri Zawawi said.

He said that this could be seen by a surge in consumption of the commodity by the American food industry.

Speaking at a forum held in conjunction with the recent World Halal Expo here, Zafri said that the blend of palm oil, soybean oil and canola oil is also marketed commercially in the U.S. and Malaysia under the Smart Balance Brand.

He said as for the Middle East and Organisation of Islamic Conference (OIC) countries, there are opportunities for trans fats-free solid fats, especially vanaspati and vegetable ghee.

Zafri said that palm oil also offers various cost effective options and fractions…

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Business Times

Saturday - December 22, 2007

CPO FUTURES

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives Bhd closed mostly higher yesterday due to the rise of soyaoil futures on the Chicago Board of Trade overnight, a dealer said.

“It seems like the steadier gains on soyoil futures had helped to support the CPO market,” he said.

Prices of soyaoil and CPO, which are competing for the same export destinations, normally moved in tandem.

The benchmark third-month March 2008 contract rose RM30 to settle at RM2,992 per tonne.

For other contract months, January 2008 climbed RM32 to RM2,978 per tonne, February 2008 increased RM32 to RM2,990 per tonne, April 2008 gained RM25 to RM2,987 per tonne and May 2008 went up RM25 to RM2,990 per tonne.

Total volume decreased to 3,841 lots from 7,615 lots recorded on Wednesday while open interest declined to 41,071 contracts from 42,145…

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Business Times

Thursday - December 20, 2007

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives Bhd closed higher yesterday boosted by technical correction, dealers said.

They said the market was basically higher yesterday on active trade for the week due to the coming Hari Raya Aidiladha festival.

“The market was also up on the upward performance on the Chicago Board of Trade,” he said.

Soyaoil and palm oil compete for similar export destinations and their prices often move in tandem.

At the close, January 2008 rose RM10 to RM2,946 per tonne, February 2008 advanced RM10 to RM2,958 per tonne, March 2008 increased RM12 to RM2,962 and April 2008 contracts rose by RM12 to RM2,962 per tonne.

Volume surged to 7,615 lots from 5,197 lots on Tuesday while open interests increased to 42,145 contracts from 4,1920 contracts previously.

On the physical market, December South higher at RM2,908…

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G. Chandrashekhar

Mumbai, Dec. 25

The new year is unlikely to bring any respite from high prices of vegetable oil. If anything, the upside risk to prices even from the current strong levels is high. Developments in the US, world’s largest producer of soyabean, will be keenly watched.

Not only current crush demand and seasons ending stocks, but also competition for acreage (crop to be planted in April 2008), weather conditions, crop size and quality prospects are all expected to play a significant role in nearby and forward impacting prices.

With final 2007 crop numbers almost nearly known (but for some small adjustments that USDA may make in its January 2008 report), market participants have indeed begun to look at 2008 crop planting prospect.

Advantage wheat

In 2007, because wheat rallied the maximum followed by soyabean and to a less extent by…

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KUALA LUMPUR (Thomson Financial) - Malaysian crude palm oil (CPO) futures contracts traded on the Malaysian derivatives exchange were at a fresh record Wednesday, supported by high oil and soybean prices, and speculative buying on concerns recent floods may have hurt CPO production.

At 11.24 am, the benchmark CPO futures contract for March delivery rose 41 ringgit to 3,071 ringgit, off a new all-time high of 3,074 ringgit. The previous all-time high was 3,068 ringgit recorded on November 26.

‘I think speculative buying ahead of December production figures is driving up prices at the moment,” said Yin Shao Yang, plantations analyst at Kenanga Research.

‘There could be a shortfall in CPO production in December due to the flooding and the market senses that,” he said.

Major floods have recently hit Johor and Pahang, two of the largest palm oil producing states in…

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