Business Times

Wednesday, August 27, 2008

CPO FUTURES

PALM oil futures in Malaysia tumbled for the second day yesterday as a drop in rival soybean oil and a bearish outlook from a leading analyst unsettled the market.

Palm oil, the world’s most consumed vegetable oil, declined after Dorab Mistry, director at Godrej International Ltd, said on Monday that prices must fall to RM2,200 (US$653) a metric ton in the next few weeks for demand to rebound.

The edible oil slumped as “someone with that caliber turned bearish” and “soybean oil also fell,” Kan Heen Sing, trader at HLG Futures Sdn Bhd, said yesterday by phone from Kuala Lumpur.

Palm oil for November delivery fell as much as 5.2 per cent to RM2,465 a ton and was at RM2,485 in Kuala Lumpur at 12.33 pm…

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Business Times

Tuesday, August 26, 2008

CPO FUTURES

BANGKOK: Malaysian crude palm oil futures fell 4.2 per cent yesterday on increasing supply concerns and weaker crude oil prices, dealers said.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange fell RM115, or 4.2 per cent to finish at RM2,600 (US$770) per tonne. Other traded contract fell between RM42 and RM136 ringgit per tonne. Overall volume stood at 9,733 lots of 25 tonnes each.

“The market is going down on the back of Mistry’s comments which are looking at higher production,” a trader said.

Asia’s high crude palm oil cycle is likely to stretch to October and November due to ideal weather conditions and liberal use of fertiliser, leading industry analyst Dorab Mistry told a conference yesterday.

Mistry, a director with Indian firm Godrej International, said Malaysian crude…

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Friday, August 22, 2008

CPO FUTURES

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed higher for the second consecutive day yesterday, riding on the back of the rising crude oil and soyaoil prices overnight.

Crude oil price rose to US$116 yesterday on geopolitical tension between Russia and Poland.

The high oil price was lending support to the global vegetable oil market, including palm oil, a dealer said.

The strain between Russia and Poland came about after a missile deal between the US and Poland.

Russia is the world’s second-largest oil exporter.

September 2008 gained RM80 to end at RM2,645, October 2008 added RM80 to RM2,650, November 2008 rose RM62 to RM2,653 and December 2008 advanced by RM62 to RM2,652 per tonne.

Volume fell to 11,652 lots from 13,040 lots…

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Business Times

Wednesday - August 20, 2008

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives finished lower yesterday, dampened by declining crude oil prices which fell to US$112 per barrel, a dealer said.

He said that the local market which was up in the morning session ended at RM2,436 per tonne with no follow through as most buyers remained cautious on rumours of further defaults by Chinese and Indian players.

“The rumours depressed the local sentiment,” the dealer said, adding that this may lead to a continuous decline in CPO prices.

At close yesterday, September 2008 declined RM60 to RM2,425 per tonne, October 2008 was down RM55 to RM2,430 per tonne, November 2008 slipped RM49 to RM2,436 per tonne and December 2008 eased RM62 to RM2,423 per tonne.

Turnover, however, rose to 14,530 lots from 10,089 on Monday while open interests declined to 52,190 contracts…

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Wednesday, August 20, 2008

CPO FUTURES

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives finished lower yesterday, dampened by declining crude oil prices which fell to US$112 per barrel, a dealer said.

He said that the local market which was up in the morning session ended at RM2,436 per tonne with no follow through as most buyers remained cautious on rumours of further defaults by Chinese and Indian players.

“The rumours depressed the local sentiment,” the dealer said, adding that this may lead to a continuous decline in CPO prices.

At close yesterday, September 2008 declined RM60 to RM2,425 per tonne, October 2008 was down RM55 to RM2,430 per tonne, November 2008 slipped RM49 to RM2,436 per tonne and December 2008 eased RM62 to RM2,423 per tonne.

Turnover, however, rose to 14,530 lots from 10,089 on Monday while open interests…

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Tuesday, August 19, 2008

CPO FUTURES

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives ended mostly higher yesterday on short covering after having been in an oversold market recently, dealers said.

“The market closed slightly higher today. There were not much activities in the market,” one of the dealers said, adding that the rally in the soyoil futures and crude oil markets also provided support to the CPO market.

US crude oil price went up 31 cents to US$114 per barrel on supply concerns with tropical storm Fay moving towards the Gulf of Mexico.

Another dealer said that overall sentiment remained weak as buyers were seeking to renegotiate prices to a lower level.

He said prices dropped in recent weeks as buyers defaulted by as much as 300,000 tonnes during the period according some reports.

More defaults may…

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Saturday - August 16, 2008

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives finished sharply lower yesterday, down at RM2,452 to touch an 11-and-a-half-month low, dealers said.

They said the local market had been pressured by declining crude oil prices which saw the price falling to US$113 per barrel and reports that China players have defaulted to take about 40,000 tonnes palm oil amid a lower CPO prices.

According to one of the dealers, although both cargo surveyors reported bullish export data for the Aug 1-15 period, the market did not show any response to the reports.

He said Societe Generale de Surveillance yesterday reported that exports of Malaysian palm oil products for the first 15 days rose by 2.6 per cent to 643,324 tonnes while Intertek Testing Services estimated a 30.7 per cent increase to 673,264 tonnes from 515,266…

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Friday - August 15, 2008

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives which were up in the earlier session, finished slightly lower yesterday following an overall weakening in the global commodities market, a dealer said.

He said that the earlier uptrend was due to a technical correction following recent losses.

The benchmark October contract closed lower by RM13 at RM2,548 per tonne compared to Wednesday’s closing of RM3,561 per tonne.

The dealer said that he expects the local CPO to hover around RM2,500 - RM2,600 per tonne today.

For other spot months, August and September 2008 lost RM13 each to settle at RM2,553 and RM2,551 per tonne respectively.

Meanwhile, November 2008 dropped RM15 to settle at RM2,550 per tonne.

Yesterday’s turnover rose to 15,949 lots from Wednesday’s 15,424, while open interest decreased to 52,639 contracts from 53,630 previously.

On the physical market, August South was…

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Thursday - August 14, 2008

CPO FUTURES

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives which were up in the earlier session, finished slightly lower yesterday following an overall weakening in the global commodities market, a dealer said.

He said that the earlier uptrend was due to a technical correction following recent losses.

The benchmark October contract closed lower by RM13 at RM2,548 per tonne compared to Wednesday’s closing of RM3,561 per tonne.

The dealer said that he expects the local CPO to hover around RM2,500 - RM2,600 per tonne today.

For other spot months, August and September 2008 lost RM13 each to settle at RM2,553 and RM2,551 per tonne respectively.

Meanwhile, November 2008 dropped RM15 to settle at RM2,550 per tonne.

The day’s turnover rose to 15,949 lots from Wednesday’s 15,424, while open interest decreased to 52,639 contracts from 53,630 previously.

On the physical market, August South…

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Wednesday - August 13, 2008

CPO FUTURES

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower for the second consecutive day yesterday tracking the weaknesses in the global crude oil market, a dealer said.

Crude oil price eased to US$113 per barrel today amid a stronger US dollar.

While the prices of CPO have come down, the Malaysian Palm Oil Board (MPOB) has said that the RM2,500-RM2,800 per tonne range was a sustainable level for local CPO prices.

The board said if the prices were too high, the downstream industries would be affected.

“The important thing is not to see the sudden drop in the price. What is important is the sustainable price to ensure that we can continue to develop the industry,” MPOB chairman, Datuk Sabri Ahmad, said.

At close yesterday, spot month August, September and October 2008 dropped RM110 each to settle at…

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