Wednesday, June 30, 2010

DJ Asian Crude Palm Oil Ends Up On Soyoil; Weak Exports Cap Gains

JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended higher Wednesday in volatile trade as a strong recovery in soyoil futures during Asian trading hours offset bearish lower-than-expected exports, trade participants said.

The benchmark September contract on the Bursa Malaysia Derivatives exchange ended up MYR7 at MYR2,373 a metric ton, after trading in a range of MYR2,338-MYR2,375.

At the end of trade on the BMD, July soyoil on the electronic Chicago Board of Trade was up 31 points at 36.24 cents a pound.

CBOT soyoil futures had dropped to an eight-month low in overnight trade, but its recovery in Asian trade helped CPO prices to climb from early lows back into positive territory in the afternoon.

However, lower-than-expected exports failed to impress the market, so gains and volume were limited.

Cargo surveyor SGS (Malaysia) Bhd. estimated Malaysia's June exports up 1.2% from the previous month at 1.34 million tons. Another surveyor, Intertek Agri Services, estimated exports at 1.35 million tons, up 1.5%. Both estimates were slightly lower than market expectations of 1.36 million tons.

Traders said they expect June's production to rise 10%-15%, strongly outpacing growth in exports of only 1.2%-1.5%, so buying interest was tepid.

"There's nothing to jolt the market into action," a Kuala Lumpur-based trader said.

The cash market was quiet with few trades reported.

Cash palm olein for August was traded at $770/ton, free on board Malaysian ports.

Open interest on the BMD was 74,789 lots versus 74,972 lots Tuesday. One lot is equivalent to 25 tons.

A total of 15,164 lots of CPO were traded versus 15,008 lots Tuesday.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT: 
 
Month   Close  Previous  Change   High    Low 
Jul'10  2,425     2,435  Down 10  2,432   2,410 
Aug'10  2,392     2,391  Up   01  2,401   2,365 
Sep'10  2,373     2,366  Up   07  2,375   2,338 
Oct'10  2,353     2,350  Up   03  2,361   2,325 
 
 
  -By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277;
fawziah.selamat@dowjones.com 
 

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