Business Times

Wednesday, July 30, 2008

CPO FUTURES

MALAYSIAN crude palm oil futures dropped as much as 4.7 per cent to seven-and-a-half month lows yesterday, slipping below a key resistance level of RM3,000 on signs of rising stocks of the vegetable oil.

Palm oil, stricken in recent weeks by weakening crude oil prices and slow overseas demand, has wiped out all its gains for this year and is now down more than 3 per cent since the start of 2008.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell as much as RM140 to RM2,861 a tonne, the lowest level since December 12, 2007. The contract then clawed back some losses to settle down RM32 at RM2,969.

“Even if exports were to gain some ground this month with start of the Asia festival demand, production in Malaysia is still going to be much higher,” said a trader with a…

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PALM OIL PRICES ON BURSA MALAYSIA DERIVATIVES BHD
Wednesday, July 30, 2008
Source from The Star

The Crude Palm Oil Futures Closing : Tuesday, 29 July 2008

(Prices are in RM/tonne)

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SERDANG, July 29 (Bernama) — Crude palm oil prices are not expected to decline drastically as global demand for vegetable oils continues to exceed supply, Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui, said here Tuesday.

Nevertheless, he said the government would monitor closely present CPO price trends, which were trading at just below RM3,000 per tonne, having come down by RM500 in recent weeks.

Crude oil prices, which influence CPO prices, have fallen to US$123 per barrel from a high of US$147 per barrel.

“We are looking at the trading situation and whether it is for the longer or shorter term as well as the level of stocks,” he said when asked on the recent downtrend on CPO prices.

Analysts said the commodities market was likely undergoing a corrective phase.

“Yes, crude oil prices have some influence on CPO prices dropping (but) I don’t see…

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Indonesia’s Department of Agriculture says its serious about ensuring Papuans have a fair share of the prosperity from oil palm development in the region.

Indonesia, which is the world’s largest palm oil producer, is looking to expand its oil palm plantations in its vast easternmost provinces in Papua.

However NGOs like Telepak and greenpeace are warning that as well as having disastrous enviornmental impacts on Papuan communities through deforestation, oil palm contractors tend to prioritise outside workers.

But the department’s Director of Seedlings and Production Means, Darmansyah Basyaruddin, says thousands of the local labour force will be absorbed.

“The development is for the people. Our concept is People, Planet and Profit. So without the people, we cannot do it; without the planet, we cannot do it; without the profit, we CANNOT do it. It’s impossible for us to develop a…

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MUMBAI: Edible oil prices have slid in the physical market over the past one month due to fall in crude palm oil (CPO) prices globally.

CPO constitute a major share of India’s edible oil imports which are up by 13% at over 30 lakh tonne for eight months from November 2007 to June 2008 compared to a year ago. The bulk prices of refined palm oil, refine soyabean oil and mustard oil are down between Rs 6 and Rs 8 per kg in the local markets.

According to data provided by the Solvent Extractors Association, the price of imported CPO (ex-Kandla) in local rate is down to Rs 44,000 per tonne from Rs 51,600 on July 1. Crude degummed soyabean oil (ex-Mumbai) is down to Rs 58,500 per tonne from Rs 65,000. Internationally crude palm oil (FOB Indonesia) has dropped to $980 per tonne…

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HYDERABAD: With elections just a winter away, the Centre has decided to supply 25 lakh tonne of palm oil at Rs 45 per litre to over a dozen states in the country. The market price of palm oil is around Rs 65 per litre at present. The Centre will have to fork out a subsidy of Rs 1,500 crore annually for this scheme.

Edible oil prices continue to rise along with other commodity prices, fuelling inflationary expectations. Hence, the government has stepped in to absorb a part of the price hike to make palm oil more affordable.

The scheme, under the National Food Security Mission (NFSM), has been launched first in Congress ruled Andhra Pradesh. The state will be allocated around 20,000 tonne of palm oil under this scheme, said union minister for agriculture Sharad Pawar.

“The central government will supply palm oil to the…

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PALM OIL PRICES ON BURSA MALAYSIA DERIVATIVES BHD
Tuesday, July 29, 2008
Source from The Star

The Crude Palm Oil Futures Closing : Monday, 28 July 2008

(Prices are in RM/tonne)

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Business Times

Tuesday - July 29, 2008

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended lower yesterday as worries about an increase in supply weighed on the market, dealers said.

They said that the supply concern pulled down the CPO futures prices by 2.2 per cent to its lowest level in more than eight months.

The benchmark October contract on Bursa Malaysia Derivatives Exchange went down by RM69 to settle at RM3,001 per tonne, its lowest since Nov 7 last year.

On the positive side, the losses are expected to be curbed soon with the Plantation Industries and Commodities Ministry’s move to discuss the declining price of palm oil in the world market and ensure that it does not become a long-term trend.

Its minister Datuk Peter Chin Fah Kui said the price decrease could be influenced by Malaysias monthly stock…

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The Star

Tuesday - July 29, 2008

by Izwan Idris

Petaling Jaya

Crude palm oil (CPO) futures on Bursa Malaysia tumbled yesterday after a last-minute sell-off wiped out gains made so far this year.

The benchmark third month contract for October delivery plunged RM69 to close at RM3,001 per tonne yesterday. The spot month August contract was down RM40 to RM3,055 while September fell RM79 to RM3,001.

“CPO is under pressure on rising supply and weakening sentiment on commodities, but we see demand from overseas picking up ahead of the fasting month which will start in September,” a Kuala Lumpur-based trader said.

CPO price had in March risen to a record RM4,486 per tonne, coming off a rally that started in early 2006.

Yesterday’s fall, on the back of a 9.2% drop last week, put CPO current price below where it was at the start…

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PUTRAJAYA: Members of the palm oil industry have so far donated RM1.75 million to the victims of China’s Sichuan Province earthquake which happened in May.

The latest donation of RM150,000 from Sime Darby, Boustead Plantation Bhd, the Sarawak Land Consolidation and Rehabilitation Board, Perlating-Jernih Plantation Sdn Bhd, Asia Oil Palm Sdn Bhd, Tradewind Plantation Bhd and Buluh Akar Holdings Sdn Bhd was handed over to Chinese ambassador Chen Yong Hua on Thursday.

The donation was presented to Chen by Sime Darby plantations chief Datuk Azhar Abdul Hamid, in the presence of Plantation Industries and Commodities Minister Datuk Peter Chin.

Following the May 12 earthquake, IOI, KL Kepong and Sime Darby had donated RM1.6 million.

Chen said official government figures put the number of deaths at 69,197, injured at 374,176 and the missing at 18,222.

Last year, China was the largest importer of…

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