The Star

25 October, 2010

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to remain firmer this week, dealers said.

During the week, CPO prices were mostly higher in line with other vegetable oil markets, a weak US dollar and strong export data.

On Wednesday, Malaysia’s palm oil export figures released by cargo surveyor Societe Generale de Surveillance for Oct 1-20, rose 5.4% to 929,473 tonnes from the 881,812 tonnes shipped from Sept 1-20.

On a Friday-to-Friday basis, November 2010 rose RM82 to RM3,012 per tonne, December 2010 added RM75 to RM3,005 per tonne, January 2011 increased RM69 to RM3,005 per tonne and February 2011 increased RM66 to RM3,002.

The week’s turnover stood at 87,038 lots, down from the previous week’s 106,400 lots while the open position rose to 70,127 contracts on Friday from 68,320 contracts previously.

On the physical market, October South was traded higher at RM3,020 per tonne on Friday compared with RM2,940 per tonne previously. – Bernama

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Business Times

7 October, 2010

Malaysia’s September palm oil stocks probably hit a seven-month high as slightly higher output and imports outpaced overseas and local demand, a Reuters poll showed on today.

Inventories in the world’s No. 2 palm producer probably rose 2.5 per cent to 1.77 million tonnes, slowing its pace from the 22.6 per cent jump in August, a median of five planters showed.

September output is likely to be almost flat at 1.61 million tonnes.

Poll estimates ranged from 1.60 to 1.67 million tonnes as traders were divided between favourable weather boosting yields and the long Eid al-Fitr holidays slowing harvest.

“Sabah’s production is increasing tremendously even though we had some holidays in September,” said one poll contributor, referring to Malaysia’s key oil palm growing state on Borneo island. Read the rest of this entry »

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By Thomas Kutty Abraham

Oct. 6 (Bloomberg) — Palm oil climbed for a second day, mirroring a global stocks and commodities rally, on optimism that demand for the vegetable oil may increase as central banks take steps to spur economic growth and boost liquidity.

December-delivery futures advanced as much as 0.6 percent to 2,722 ringgit ($881) a metric ton on the Malaysia Derivatives Exchange and closed the morning session at 2,719 ringgit. The price added 1.5 percent yesterday, the most in 11 days.

Equity markets rallied around the world after the Bank of Japan unexpectedly reduced interest rates yesterday and said it would buy as much as $60 billion of assets to keep the economy from faltering. The MSCI Asia Pacific Index rose to a 26-month high on speculation central banks would follow Japan. Read the rest of this entry »

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by Ooi Tee Ching

Business Times

21 September, 2010

This is the third time this year palm oil futures pierced through the RM2,700 per tonne level.

Johor-based Kim Loong Bhd managing director Gooi Seong Heen said: “The run-up in prices is most probably fuelled by fear of erratic weather causing supply shortage in soyaoil.
Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

8 September, 2010

Palm oil advanced to the highest level in three weeks, tracking rival soybean oil, which gained after a U.S. government report showed increased sales to China, the biggest consumer of the product.

The November-delivery contract jumped as much as 1 percent to 2,655 ringgit ($852) a metric ton, the highest intraday level since Aug. 17, and ended the morning session at 2,650 ringgit. December-delivery soybean oil yesterday jumped 2.3 percent to 41.79 cents a pound on the Chicago Board of Trade, the biggest gain for a most-active contract since Aug. 13.

“Palm oil will continue to follow soybean oil until we have clarity on the size of the U.S. crop,” said Arhnue Tan, an analyst at ECM Libra Capital Sdn. in Kuala Lumpur. Read the rest of this entry »

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By Thomas Kutty Abraham

Bloomberg

8 September, 2010

A rally in palm oil may cool demand for the world’s most used cooking oil and prompt some buyers to switch to soybean oil, according to Adani Wilmar Ltd., India’s second-biggest importer of vegetable oils.

A seasonal increase in production starting next month in Indonesia and Malaysia, the top producers, and the tendency of palm oil to cloud over in winter may cool demand from consumers including India, Atul Chaturvedi, Adani Wilmar’s chief executive officer, said in a telephone interview from Ahmedabad yesterday.

Palm oil, used in food and fuel, has advanced 15 percent from near an eight-month low on July 7, driven by demand from Asian countries celebrating festivals in the September quarter, and a stronger Malaysian currency. Soybean oil has climbed 12 percent in the same period.

“Palm will have a tough time finding a home,” Chaturvedi said. “With winter around the corner and the weather getting colder as we go along, thick oil is not bound to be all that exciting compared with liquid oil.” Read the rest of this entry »

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Business Times

9 September, 2010

DULL demand from overseas and domestic buyers will keep crude palm oil futures prices on Bursa Malaysia Derivatives rangebound next week, a dealers said.

“It is difficult to judge the market movement next week because the holiday is too long and most traders have already stocked up their positions before the Muslim (Hari Raya) celebration,” he said.

The dealer said trading may be also tight as investors would look out for the data on the first ten days of palm oil exports in September and the monthly industry statistics to be released by the Malaysian Palm Oil Board. Read the rest of this entry »

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Business Times

4 September, 2010

Dull demand from overseas and domestic buyers will keep crude palm oil futures prices on Bursa Malaysia Derivatives rangebound next week, a dealers said.

“It is difficult to judge the market movement next week because the holiday is too long and most traders have already stocked up their positions before the Muslim (Hari Raya) celebration,” he said.

The dealer said trading may be also tight as investors would look out for the data on the first ten days of palm oil exports in September and the monthly industry statistics to be released by the Malaysian Palm Oil Board (MPOB).

A lackluster performance was reported for August by cargo surveyors. Read the rest of this entry »

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