Crude Palm Oil Ends Down On Weak Crude Oil, Soyoil

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Thursday as crude oil and soyoil futures weakened, trade participants said.
Concerns that recent high prices are turning away Indian buyers also pushed prices into negative territory.
The benchmark June contract on Bursa Malaysia Derivatives ended MYR60 lower at MYR2,535 a metric ton, after trading in a range of MYR2,528-MYR2,587.
By the end of trade on the BMD, May Brent crude on London's ICE futures exchange was trading $0.66 lower at $81.30 a barrel.
May soyoil on the e-CBOT was down 65 points at 39.19 cents a pound.
Weak external cues were compounded by fears that demand may be slackening as a result of current prices.
"Some exporters feel current prices are on the high side," turning away Indian buyers, a Kuala Lumpur-based trader said.
He added that demand from Indian buyers would likely increase if the benchmark contract falls to around MYR2,500 from its recent levels above MYR2,600.
Cargo surveyors are due to release data for Malaysia's March 1-20 palm oil exports by Monday.
"Participants will likely start speculating on the level of exports tomorrow. Although exports are feared to be weak, (the) end-month stocks level and production are still bullish, so that should negate some of those fears," said another Kuala Lumpur-based trader.
In the cash market, palm olein for July/August/September traded at $800/ton, an executive from a Singapore-based commodities brokerage said.
Cash CPO for prompt shipment was offered MYR50 lower at MYR2,580/ton.
Open interest on the BMD was 81,232 lots Thursday, down from 84,059 lots Wednesday. One lot is equivalent to 25 tons.
A total of 21,730 lots of CPO were traded versus 15,515 lots Wednesday.

Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: 

Month      Close    Previous   Change    High    Low
Apr 2010   2,569    2,624      Dn 55     2,605   2,561
May 2010   2,550    2,605      Dn 55     2,596   2,539
Jun 2010   2,535    2,595      Dn 60     2,587   2,528
Jul 2010   2,530    2,583      Dn 53     2,570   2,520 

-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277; fawziah.selamat@dowjones.com

(END) Dow Jones Newswires
March 18, 2010 06:52 ET (10:52 GMT)
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