Business Times

12 May, 2011

CRUDE palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher again yesterday on continued buying from traders, dealers said.

A dealer said trading was, however, volatile with traders on the lookout for fresh leads.

“Spot month May 2011 turned bearish but overall fundamentals are still bullish,” she said, adding that the current hot spell may be temporary and was not expected to weigh on the coming oil palm harvest.

May 2011 lost RM63 to RM3,437 a tonne, June 2011 gained RM10 to RM3,370, July 2011 moved up RM11 to RM3,269 and August 2011 climbed RM20 to RM3,248.

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By Hanim Adnan

The Star

11 May, 2011

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) continued to close on a positive note despite the higher palm oil production and stock figures for April released by the Malaysian Palm Oil Board (MPOB) yesterday.

The three-month benchmark July contract settled RM20 higher at RM3,258 per tonne as market sentiment was boosted by anticipation of better export outlook in the coming months and higher crude oil prices.

Palm oil stocks jumped from 1.61 million tonnes in March to 1.67 million tonnes in April the highest in six months following higher production at 1.53 million tonnes in April (March: 1.41 million tonnes)

Exports for April rose to 1.33 million tonnes the highest in five months from 1.24 million tonnes a month earlier, said MPOB. Read the rest of this entry »

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Business Times

9 May, 2011

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to remain rangebound next week due to volatile conditions in the global economy, dealers said.

They said demand for vegetable oil would be affected following the tightening of monetary policy by authorities around the world to help curb inflation that has sparked market concern.

Meanwhile, players are also adopting a wait-and-see approach ahead of the release of production, exports and stocks data by the Malaysian Palm Oil Board on Tuesday.

Other stock data on the same day are from two cargo surveyors, Intertek Testing Services and Societe General de Surveillance. Read the rest of this entry »

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Business Times

6 May, 2011

CRUDE palm oil futures contract on Bursa Malaysia Derivatives closed lower yesterday in tandem with other weak global commodity markets, dealers said.

They said concerns over palm oil supply and subdued demand in the physical market weakened market sentiment, globally, against a backdrop of a stronger US dollar.

The downtrend was also due to investors concerned over the possibility of China tightening further its monetary policy to fight inflation.
May trimmed RM25 to RM3,385 a tonne, June fell RM24 to RM3,285 a tonne, July decreased RM36 to RM3,229 and August was unchanged at RM 3,255.

However,turnover rose to 28,605 lots from 24,367 lots on Wednesday, while open interest amounted to 108,476 contracts from 105,814 contracts on Wednesday.

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Ranjeetha Pakiam

Bloomberg

6 May, 2011

Palm oil fell for a third day after commodities dropped the most in more than two years on concern that economic growth will slow as central banks seek to cool inflation by raising borrowing costs.

The July-delivery contract declined as much as 1.8 percent to 3,170 ringgit ($1,057) a metric ton on the Malaysia Derivatives Exchange, the lowest since March 24, and ended the morning session at 3,196 ringgit. Futures have fallen 2.3 percent this week, set for a second weekly decline.

The Standard & Poor’s GSCI index of 24 raw materials sank 6.5 percent yesterday in New York, the biggest decline since January 2009. Oil tumbled 8.6 percent, the most in two years, to $99.80 a barrel. Malaysia raised interest rates for the first time this year joining India, Vietnam and the Philippines in stepping up the fight against inflation amid surging oil and food prices. Read the rest of this entry »

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Business Times

5 May, 2011

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower yesterday in line with the weak soybean futures at the electronic Chicago Board of Trade, dealers said.

Dealers said the weak overseas market due to higher supply of the commodity and shrinking demand, added bearishness to the market.

May rose RM4 to RM3,410 a tonne, June fell RM3 to RM3,309, July decreased RM6 to RM3,265 and August declined RM2 to RM 3,255.

However, turnover went up to 24,367 lots from 14,358 lots previously, while open interests rose to 105,814 contracts from 105,765 on Tuesday.

On the physical market, May South dwindled RM30 to RM3,380 a tonne.

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By Hanim Adnan

The Star

5 May, 2011

Current prices pressured by recovery in global production

PETALING JAYA: Crude palm oil (CPO) may hold steady above RM3,000 per tonne by June but prices are currently being bogged by recovery in global palm oil production, better soybean crop in South America and weaker exports outlook, said market players.

CPO futures on Bursa Derivatives settled lower yesterday with the three-month benchmark July contract down RM6 to close at RM3,265 per tonne. CPO prices currently have fallen by about 16% after touching a high of RM3,955 per tonne on Feb 11.

The latest palm oil statistics for April to be released by the Malaysian Palm Oil Board (MPOB) early next week would be an important indictor for the direction of CPO prices in the next two months. Read the rest of this entry »

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Ranjeetha Pakiam

Bloomberg

5 May, 2011

Palm oil fell for a second day, tracking declines in soybeans, which fell on speculation that persistent rains in the growing regions in the U.S. will encourage farmers to plant more of the oilseed than corn.

The July-delivery contract declined 1.1 percent to 3,229 ringgit ($1,076) a metric ton on the Malaysia Derivatives Exchange, the lowest close since Nov. 24, erasing gains of as much as 0.8 percent in intraday trading.

Rain in the Northern Plains in the U.S. will likely slow planting of corn, soybeans and spring wheat, while heavier precipitation is expected to return to the Midwest next week, Telvent DTN Inc. said in a forecast yesterday. Read the rest of this entry »

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