Tuesday, April 6, 2010

DJ MARKET TALK: BMD CPO Futures Expected To Open Tad Higher

[Dow Jones] BMD CPO futures expected to open MYR5-MYR10 higher on fresh buying, positive leads from crude oil; but gains unlikely to last. "The market may open a tad higher on crude oil but the gains on  buying support may be followed by profit-taking due to bearish palm oil supply fundamentals," says trading executive based in Singapore. Traders expect higher CPO inventories in March, April due to rise in output in Malaysia, Indonesia. Nymex May crude settled up $1.75 at $86.62/bbl Monday, its highest price since October 2008.

CPO futures may try to test MYR2,510, then MYR2,500/ton today, says analyst in Kuala Lumpur. Benchmark BMD June CPO futures finished MYR29 lower yesterday at intraday low of MYR2,530/ton.


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