Business Times

3 September, 2010

CRUDE palm oil futures prices on Bursa Malaysia Derivatives ended mixed yesterday, with the benchmark November contract settling RM7 higher at RM2,542 per tonne.

A dealer said despite the lack of direction, the market strong’s fundamentals remained intact on expectation of positive demand for the vegetable oil in the following months.

“Concerns over weak production in the coming weeks as most plantation workers take leave for the long Muslim holiday and that rain will disrupt output in Indonesia and Malaysia will lift the market in the near-term,” he added.

At close, September 2010 dipped RM5 to settle at RM2,690 while October 2010 fell RM3 to RM2,590.

Meanwhile, December 2010 was RM11 higher at RM2,535 per tonne.

Total volume rose to 16,794 lots from 15,539 lots Wednesday while open interest decreased slightly to 66,548 contracts from 66,585 contracts previously.

On the physical market, September South was up RM30 at RM2,710 per tonne from Wednesday’s RM2,680 per tonne.

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By Masumi Suga and Sean Collins

Bloomberg

3 September, 2010

Golden Agri-Resources Ltd., part of Indonesia’s Sinar Mas Group, said the government of Liberia and Golden VerOleum (Liberia) Inc. plan to invest $1.6 billion in oil palm plantations in the African nation.

The partners are seeking other investors to contribute to the planned spending, according to a statement filed today by Golden Agri-Resources to the Singapore stock exchange. VerOleum is a unit of Verdant Fund LP, in which Golden Agri-Resources is an investor, according to the statement.

The investment is expected to help small farmers in sustainable planting and will create more than 35,000 jobs, the statement said.

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Business Times

2 September, 2010

MALAYSIAN crude palm oil futures ended more than 1 per cent lower on yesterday, as players booked profits after data from cargo surveyors showed lacklustre overseas demand.

Malaysia’s August palm oil exports fell 17 per cent from a month ago, as the world’s No. 2 oil consumer China slowed buying due to ample stockpiles.

“There’s no sign for China to increase palm oil imports since there are still a lot of stocks in the country, but soybean demand could be higher when weather turns colder,” a trader with a Shanghai-based foreign brokerage said, adding that the country has about 450,000-500,000 tonnes of palm oil inventories at major ports.

However, some Malaysian traders are confident about the vegetable oil’s demand over the following month. Read the rest of this entry »

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Business Times

31 August, 2010

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended higher yesterday on active trade ahead of the upcoming Hari Raya Aidil Fitri.

A dealer said demand for palm oil especially from Muslim countries had gone up in the last few weeks as they accumulated stocks in preparation for the festival due next week.

At close, the September 2010 contract increased RM32 to close at RM2,720 per tonne, October 2010 rose RM11 to RM2,615 per tonne, November 2010 went up RM28 to RM2,570 per tonne and December added RM37 to RM2,562 per tonne.

Turnover, however dropped to 11,614 lots from 12,062 lots last Friday while open interest declined to 66,192 contracts from 68,853 contracts previously.

On the physical market, September South added RM20 to be at RM2,740 per tonne. The market will be closed today for the Merdeka celebration.

The dealer said a cautious trading is expected when the market reopens tomorrow as investors await the August palm oil exports data from cargo surveyors, Intertek Testing Services and Societe Generale de Surveillance, later this week.

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Business Times

28 August, 2010

Crude Palm Oil (CPO) futures on Bursa Malaysia Derivatives are expected to remain rangebound next week due to the mixed sentiment in the market, dealers said.

Some traders anticipate prices to receive a boost from lower output in Malaysia and Indonesia as workers take a long break to celebrate the Hari Raya holiday amid strong demand.

“Market sentiment will also receive continuous support from an uptrend in crude oil prices,” a dealer said.

However, the dealer said, CPO prices will move in tandem with the firmer soyoil prices on the Chicago Board of Trade.

The dealer added market players are also concerned over the strengthening ringgit which will squeeze export margins and make the import of palm oil products less attractive. Read the rest of this entry »

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Business Times

28 August, 2010

CRUDE palm oil (CPO) futures may rise about 20 per cent to trade close to RM3,000 in the second half of 2010 as erratic weather slows production growth and demand strengthens, a top industry analyst said yesterday.

Godrej International’s head of vegetable oil trading Dorab Mistry said there has been a strong catch-up rally in vegetable oil prices, particularly palm oil, which currently trades at around RM2,500 per tonnes on Bursa Malaysia Derivatives.

Palm oil gained 6 per cent in July, after dropping for two straight months before that.

“CPO on Bursa will trade close to RM3,000 and then perhaps even climb above that target, depending on how production shapes and the world economy performs,” Mistry said in a speech to be delivered in Brazil. Read the rest of this entry »

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Business Times

28 August, 2010

PRICES of crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives ended higher yesterday amid talks of new price and bad weather.

The market is reacting positively to a price forecast made by leading industry analyst Dorab Mistry, dealers said.

At close, the September 2010 contract was unchanged at RM2,688 a tonne, October 2010 increased RM31 to RM2,604, November 2010 went up RM12 to RM2,542 and December added RM12 to RM2,525.

Turnover dropped to 12,062 lots from 17,790 lots on Thursday and open interest rose to 68,853 contracts from 68,428 contracts previously.

On the physical market, August South added RM20 to be at RM2,720 a tonne.

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Business Standards

27 August, 2010

Malaysian crude palm oil futures may rise about 20 per cent to trade close to 3,000 ringgit in the second half of 2010 as erratic weather slows output growth and demand strengthens, a top industry analyst said on Thursday.

Godrej International’s head of vegetable oil trading Dorab Mistry said there has been a strong catch-up rally in vegetable oil prices, particularly palm oil that currently trades at around 2,500 ringgit on the Bursa Malaysia Derivatives (BMD).

Palm oil gained 6 per cent in July, after dropping for two straight months before that.

“CPO (crude palm oil) on the BMD will trade close to 3,000 ringgit and then perhaps even climb above that target depending on how production shapes and the world economy performs,” Mistry said in a speech to be delivered in Brazil. Read the rest of this entry »

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