Friday, March 26, 2010

Crude Palm Oil Ends Up On Export Data, Crude Oil, Soyoil

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Thursday on higher exports and supportive crude oil and soyoil prices, said trade participants.

The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR15 higher at MYR2,575 a metric ton after trading in a range of MYR2,551-MYR2,579.

Cargo surveyors released their estimates on Malaysia's March 1-25 exports, which saw increases on month, but the increases fell within market expectations.

Intertek Agri Services was the first surveyor to release its data, saying exports rose 2.3% on month to 1.11 million tons.

SGS (Malaysia) Bhd. estimated exports at 1.13 million tons, an increase of 2.1% on month.

Both estimates were within market expectations of around 1.1 million tons.

Higher crude oil and soyoil futures also provided support.

By the end of trade on the BMD, May soyoil was up 21 points at 39.28 cents a pound.

May Brent crude on London's ICE futures was up $0.27 at $79.89 a barrel.

In other news, Indonesia announced Thursday it would raise its export tax on crude palm oil in April to 4.5% from the current 3%.

However, the news didn't substantially boost CPO prices.

"The rumors (of a tax hike) have been circulating for some time, so it didn't come as a shock. It's not much of an increase too, so traders aren't too bothered by it," said a Singapore-based trader.

In the cash market, palm olein for July/August/September traded at $792.50/ton, said an executive from a Singapore-based commodities brokerage.

Cash CPO for prompt shipment was offered MYR30 higher at MYR2,640/ton.

Open interest on the BMD was 78,414 lots Thursday, up from 77,953 lots Wednesday. One lot is equivalent to 25 tons. A total of 10,656 lots of CPO were traded versus 13,662 lots Wednesday.

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

Month      Close    Previous   Change    High    Low
Apr 2010   2,634    2,612      Up 22     2,634   2,605
May 2010   2,599    2,577      Up 22     2,599   2,565
Jun 2010   2,575    2,560      Up 15     2,579   2,551
Jul 2010   2,558    2,546      Up 12     2,560   2,538 
-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277;

(END) Dow Jones Newswires
March 25, 2010 07:03 ET (11:03 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.

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