Commodity Roundup: CPO futures hit new high
Business Times
Thursday - December 27, 2007
CPO FUTURES
Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives Bhd hit a new high yesterday on concern that output may reduce by 18 per cent, dealers said.
The benchmark contract month March 2008 rose RM50 to an all-time high of RM3,080 per tonne at close yesterday, surpassing the previous high of 3,068 per tonne on Nov 26.
“Traders are worried over supply as floods have hit the major palm oil producing countries like
He said the higher oil and soyabean oil prices also provided a boost to the local market.
In the Asian trade, oil prices increase dto US$94.62 (US$1 = RM3.37) per barrel.
The dealer said although the export volume data is low, traders were mainly concerned over the tight supply condition and tracked the soybean oil prices, which had also broken a new high on Monday.
“CPO futures prices extended their gains to touch the new high following the high soyabean prices on the Chicago Board Of Trade,” another dealer said.
The prices of the two commodities move in tandem as they compete for similar export markets.
Malaysian palm oil exports for Dec 1-25, according to cargo surveyor Intertek Testing Services, declined 0.8 per cent to 1,117,521 tonnes from 1,126,683 tonnes shipped during Nov 1-25.
Societe Generale de Surveillance, another cargo surveyor, has release its export data later yesterday.
At close, CPO futures contract for Jan 2008 rose RM53 to settle at RM3,068 per tonne, Feb 2008 increased RM49 to RM3,075 and April 2008 advanced RM53 to be at RM3,077.
Yesterday’s volume stood at 7,459 lots, up from Monday’s 4,693 lots, while open interest declined to 39,757 contracts from 40,615 contracts.
On the physical market, January South also touched a new high of RM3,090 per tonne compared with RM3,030 recorded on Monday.
