Crude Palm Oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be marginally lower next week as more clearance of the current high inventory takes place.
"The market will slow down next week as there will be more wash out of stocks which will continue the lower price trend," said Interband Group's Senior Palm Oil Trader, Jim Teh.
He said although there will be more investors returning after the Chinese New Year holiday, there will not be much buying as yet.
"The Chinese buyers will remain sidelined as they are expected to buy only when it is necessary," one dealer said.
The local market is also expected to take cue from soyoil prices, a dealer said.
The price of CPO futures is therefore expected to hover between RM2,400 and RM2,500 per tonne next week, the dealer said.
The market was closed on Friday for the Maulidur Rasul (Prophet Muhammad's birthday) celebration.
On a week-to-week basis, March 2010 dropped RM15 to RM2,595 per tonne, April 2010 edged down RM9 to RM2,590 per tonne, May 2010 slipped RM1 to RM2,595 per tonne and June 2010 decreased RM11 to RM2,579 per tonne.
The weekly turnover increased to 56,619 lots from 39,053 lots last Friday while open interest increased to 82,981 contracts from 80,465 previously.
On the physical market, March South decreased to RM2,605 per tonne from RM2,610 per tonne a week ago.-- Bernama
Saturday, February 27, 2010
BURSA NEED TO RE-TEST 1,300: ANALYST
The Malaysian stock market needs to re-test the 1,300 level in the coming weeks if it is going to avoid a more serious pull-back when technical correction kicks in.
It posted the first high of the year at 1,308.36 on January 21.
Jupiter Securities head of research Pong Teng Siew said the current period was the usual time the market rally paused before running into profit taking.
"The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) should within the next few weeks touch the 1,330 level. If it fails to do that, then the pullback may be more serious," he said.
At the beginning of the week, the market rallied after profit-taking in the previous week. However, this was shortlived as the market dipped on Tuesday on another round of profit-taking.
On Wednesday, however, the announcement of a better than expected fourth quarter economic growth of 4.5 per cent for 2009 provided a good background for investors to pursue the performing blue chips.
The key-composite index closed the week flat at 1,270.78 on Thursday, although it was up 13.11 points compared with the previous Friday.
The stock exchange was closed on Friday for Prophet Muhammad's birthday celebration.
The flat ending of FBM KLCI was due to its limited upside as it hit a high of 1,277.66.
A local analyst expects the correction to come in around the second week of March.
"The government is expected to announce some market boosting measures in the first week of March. The correction will come in after that," he said.
He expects the Composite Index's upside to remain limited next week with resistance level at 1,280 and support level at 1,266.
On a weekly basis, the Finance Index rose 130.01 points to 11,131.95, the Plantation Index surged 40.53 points to 6,317.64 and the Industrial Index decreased 23.74 points to 2,577.27.
The FBM Emas Index went up 106.33 points to 8,560.2, the FBM Top 100 rose 98.55 points to 8,327.57 and the FBM ACE Index gained 17.81 points to 4,345.09.
The week's turnover increased to 2.78 billion shares valued at RM4.98 billion from 1.767 billion shares valued at RM3.175 billion end of the previous week.
Volume on the Main Market also rose to 2.44 billion shares worth RM4.92 billion versus 1.475 billion shares worth RM3.103 billion before.
Call warrants jumped to 130.59 million units valued at RM18.83 million from 94.302 million units valued at RM13.626 million previously.
The ACE Market volume however, slipped to 175.7 million shares worth RM39.16 million from 178.72 million shares worth RM46.585 million before. --Bernama
It posted the first high of the year at 1,308.36 on January 21.
Jupiter Securities head of research Pong Teng Siew said the current period was the usual time the market rally paused before running into profit taking.
"The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) should within the next few weeks touch the 1,330 level. If it fails to do that, then the pullback may be more serious," he said.
At the beginning of the week, the market rallied after profit-taking in the previous week. However, this was shortlived as the market dipped on Tuesday on another round of profit-taking.
On Wednesday, however, the announcement of a better than expected fourth quarter economic growth of 4.5 per cent for 2009 provided a good background for investors to pursue the performing blue chips.
The key-composite index closed the week flat at 1,270.78 on Thursday, although it was up 13.11 points compared with the previous Friday.
The stock exchange was closed on Friday for Prophet Muhammad's birthday celebration.
The flat ending of FBM KLCI was due to its limited upside as it hit a high of 1,277.66.
A local analyst expects the correction to come in around the second week of March.
"The government is expected to announce some market boosting measures in the first week of March. The correction will come in after that," he said.
He expects the Composite Index's upside to remain limited next week with resistance level at 1,280 and support level at 1,266.
On a weekly basis, the Finance Index rose 130.01 points to 11,131.95, the Plantation Index surged 40.53 points to 6,317.64 and the Industrial Index decreased 23.74 points to 2,577.27.
The FBM Emas Index went up 106.33 points to 8,560.2, the FBM Top 100 rose 98.55 points to 8,327.57 and the FBM ACE Index gained 17.81 points to 4,345.09.
The week's turnover increased to 2.78 billion shares valued at RM4.98 billion from 1.767 billion shares valued at RM3.175 billion end of the previous week.
Volume on the Main Market also rose to 2.44 billion shares worth RM4.92 billion versus 1.475 billion shares worth RM3.103 billion before.
Call warrants jumped to 130.59 million units valued at RM18.83 million from 94.302 million units valued at RM13.626 million previously.
The ACE Market volume however, slipped to 175.7 million shares worth RM39.16 million from 178.72 million shares worth RM46.585 million before. --Bernama
Friday, February 26, 2010
CRUDE PALM OIL FUTURES (FCPO)
WHAT IS FCPO?
Bursa Malaysia’s Crude Palm Oil Futures contract, or better known as FCPO, has been the global price benchmark for the Crude Palm Oil market since October 1980. The FCPO is a deliverable contract which is traded electronically on Bursa Malaysia’s trading platform. With an impressive track record of 27 years, Bursa Malaysia’s FCPO price has become the reference point for market players in the oils and fats industry.
BENEFITS OF FCPO
• To manage price risk – plantation companies, reneries, exporters and millers can
use the FCPO to manage risk and hedge against the risk of unfavourable movements
in the price of FCPO in the physical market.
• To speculate – traders can use the FCPO to gain leveraged exposure to movements in
CPO prices.
• To gain immediate exposure into the commodity market – via FCPO, global fund
managers and proprietary traders are able to be part of the active commodity
market instantaneously.
- courtesy of BURSA MALAYSIA
Bursa Malaysia’s Crude Palm Oil Futures contract, or better known as FCPO, has been the global price benchmark for the Crude Palm Oil market since October 1980. The FCPO is a deliverable contract which is traded electronically on Bursa Malaysia’s trading platform. With an impressive track record of 27 years, Bursa Malaysia’s FCPO price has become the reference point for market players in the oils and fats industry.
BENEFITS OF FCPO
• To manage price risk – plantation companies, reneries, exporters and millers can
use the FCPO to manage risk and hedge against the risk of unfavourable movements
in the price of FCPO in the physical market.
• To speculate – traders can use the FCPO to gain leveraged exposure to movements in
CPO prices.
• To gain immediate exposure into the commodity market – via FCPO, global fund
managers and proprietary traders are able to be part of the active commodity
market instantaneously.
- courtesy of BURSA MALAYSIA
PENNY STOCK ALERT: EFFICIENT
Efficient E-Solutions Bhd., an investment holding company, provides integrated outsourcing solutions in the data and document processing industry principally in Malaysia. Its data and document processing services include data extraction, conversion, formatting of documents, data printing, and preparation of printed documents for distribution by post. The company also offers a range of information technology services, such as the development of proprietary applications for work-flow management, data conversion, and electronic distribution of documents. In addition, it provides Web-finishing products, forms printing, integrated cards, labels, stickers, and other related business documents. The company was incorporated in 2003 and is based in Shah Alam, Malaysia.
www.efficient.com.my
Comment:
Start breakout on 22.02.2010 with strong momentum. The price will be higher at certain extend if they can break the resistance level, R1 = 0.275
PENNY STOCK ALERT: TCHONG-CA
MOTHER COMPANY: TAN CHONG MOTOR HOLDING BHD (TCM)
Tan Chong Motor Holdings Berhad, through its subsidiaries, engages in the assembly, distribution, and sale of passenger and commercial vehicles primarily in Malaysia. The company assembles and sells passenger cars, light commercial vehicles and spare parts, trucks, and bus chassis and buses. It also involves in the manufacture and sale of fuel tanks and press metal parts; trade and marketing of alarm security systems; provision of alarm warranty, rust proofing, and automobile workshop services; trade of car air-conditioners; trade of car grooming products; and distribution of automotive spare parts and construction of vehicle bodies. In addition, the company engages in property management and investment; and the distribution of heavy equipment and machineries. Additionally, it provides hire purchase financing, leasing, personal loans, and money changing services, as well as offers insurance agency services. Tan Chong Motor Holdings Berhad is based in Kuala Lumpur, Malaysia.
Comment:
This is my penny stock alert since the TCM going to uptrend with strong support on positive sales of automotive industry this year. Therefore their CALL WARRANT will follow the same uptrend.
UEM LAND: SINGAPORE's NEW RESORTS A BOON TO NUSAJAYA
THE opening of Singapore's two casino resorts is expected to accelerate growth at Nusajaya, with 2012 targeted as the "tipping point" for the Johor project, said UEM Land Holdings Bhd chief.
Managing director and chief executive officer Wan Abdullah Wan Ibrahim said Resorts World Sentosa and Marina Bay Sands will help boost the number of visitors to Nusajaya's own indoor theme park and Legoland, placing Johor on the world map.
"Visitors to the two resorts are not going to gamble 24/7 (24 hours a day, seven days a week). They will visit Universal Studio and we expect them to come here as we are building Legoland and an indoor theme park. We are happy to see the (Singapore) casinos ready," Wan Abdullah told Business Times after the company's shareholders' meeting in Petaling Jaya, Selangor, yesterday.
"For us, anything good that comes up in Singapore will further enhance developments at Nusajaya. Three years ago Nusajaya was a dream, concept and plan. Today it is a reality," he added.
He expects a new wave of development to hit Nusajaya in 2012 as its current on-going projects would have reached their peak.
Among the projects due to complete in 2012 are the coastal highway linking Johor Baru, quarters for state government staff and federal government agency complexes at Kota Iskandar, Legoland, as well as an indoor theme park at Puteri Harbour.
Others include the 70-bed hospital by Columbia Asia Group, UK's Newcastle University of Medicine, Marlboro College Malaysia, a British independent co-educational boarding school for children between 13 and 18 years old, and the Sri KDU Smart School.
UEM Land is the developer of Nusajaya's main features such as the state administration complexes, Puteri Harbour, the Southern Industrial and Logistics Cluster (SILC), a healthpark and residences.
Wan Abdullah said there will be a good mix of new medium, high-end and luxury homes in Nusajaya, and the entry of international bio-technology companies in SILC going forward.
UEM Land, 77.14 per cent-controlled by UEM Group Bhd, expects to do better this year, attributed by existing products and the completion of the current developments, Wan Abdullah said. - BUSINESS TIMES
Managing director and chief executive officer Wan Abdullah Wan Ibrahim said Resorts World Sentosa and Marina Bay Sands will help boost the number of visitors to Nusajaya's own indoor theme park and Legoland, placing Johor on the world map.
"Visitors to the two resorts are not going to gamble 24/7 (24 hours a day, seven days a week). They will visit Universal Studio and we expect them to come here as we are building Legoland and an indoor theme park. We are happy to see the (Singapore) casinos ready," Wan Abdullah told Business Times after the company's shareholders' meeting in Petaling Jaya, Selangor, yesterday.
"For us, anything good that comes up in Singapore will further enhance developments at Nusajaya. Three years ago Nusajaya was a dream, concept and plan. Today it is a reality," he added.
He expects a new wave of development to hit Nusajaya in 2012 as its current on-going projects would have reached their peak.
Among the projects due to complete in 2012 are the coastal highway linking Johor Baru, quarters for state government staff and federal government agency complexes at Kota Iskandar, Legoland, as well as an indoor theme park at Puteri Harbour.
Others include the 70-bed hospital by Columbia Asia Group, UK's Newcastle University of Medicine, Marlboro College Malaysia, a British independent co-educational boarding school for children between 13 and 18 years old, and the Sri KDU Smart School.
UEM Land is the developer of Nusajaya's main features such as the state administration complexes, Puteri Harbour, the Southern Industrial and Logistics Cluster (SILC), a healthpark and residences.
Wan Abdullah said there will be a good mix of new medium, high-end and luxury homes in Nusajaya, and the entry of international bio-technology companies in SILC going forward.
UEM Land, 77.14 per cent-controlled by UEM Group Bhd, expects to do better this year, attributed by existing products and the completion of the current developments, Wan Abdullah said. - BUSINESS TIMES
TAN CHONG EXPECTS SALES OF NEW VEHICLE TO BOUNCE BACK
NEW vehicles sales should bounce from a 2 per cent drop to 536,905 units in 2009 to top 550,000 units this year, said a senior executive of Nissan's local distributor.
Nissan's share of the total industry volume (TIV) for 2010 is expected to improve to 5.6 per cent from 5.5 per cent last year, Edaran Tan Chong Motor Sdn Bhd (ETCM) executive director Datuk Dr Ang Bon Beng said.
"This year, we forecast the TIV to be between 545,000 units and 550,000 units, and MPV (multi-purpose vehicles) will be the growth segment," Ang told a media gathering on Wednesday.
ETCM's expected TIV matches the forecast by the Malaysian Automotive Association (MAA) of a 2.43 per cent growth to 550,000 units, although unofficially the latter thinks sales this year may hit a new high to break the previous record of 552,316 units in 2005.
Last year, ETCM and Nissan bucked the industry sales pattern amid what Ang described as a "challenging 2009". It sold five per cent more vehicles to 29,683 units from 28,313 units in 2008.
"2009 was a very challenging year to ETCM due to the effects of economic downturn and aggravated by the fact that we did not launch any new CKD (completely knocked down) models.
"Nevertheless, ETCM is one of the few auto players which have performed reasonably well under such difficult conditions," he said.
Ang - who was recently named Automotive Man of the Year at The New Straits Times/Maybank Car of the Year 2009 award - said ETCM expects to maintain the current momentum with a few core models and some proven models. It also plans to introduce two new models this year.
Regionally, the company will accelerate its presence in Indochina. It has set up a trading and marketing subsidiary in Cambodia to deal with Nissan vehicles there, and is taking steps to penetrate other markets, in particular Laos.
Ang said the 2009 performance, was led by a healthy demand and market acceptance of the Nissan Grand Livina.
Based on the MAA figures, the Grand Livina has officially taken over as 2009's best-seller in the non-national three-row MPV (petrol) segment with a market share of 38 per cent.
The Nissan Urvan, meanwhile, emerged as the best-seller in the window van (diesel) segment for 2009, with 30 per cent of the market - BUSINESS TIMES
Nissan's share of the total industry volume (TIV) for 2010 is expected to improve to 5.6 per cent from 5.5 per cent last year, Edaran Tan Chong Motor Sdn Bhd (ETCM) executive director Datuk Dr Ang Bon Beng said.
"This year, we forecast the TIV to be between 545,000 units and 550,000 units, and MPV (multi-purpose vehicles) will be the growth segment," Ang told a media gathering on Wednesday.
ETCM's expected TIV matches the forecast by the Malaysian Automotive Association (MAA) of a 2.43 per cent growth to 550,000 units, although unofficially the latter thinks sales this year may hit a new high to break the previous record of 552,316 units in 2005.
Last year, ETCM and Nissan bucked the industry sales pattern amid what Ang described as a "challenging 2009". It sold five per cent more vehicles to 29,683 units from 28,313 units in 2008.
"2009 was a very challenging year to ETCM due to the effects of economic downturn and aggravated by the fact that we did not launch any new CKD (completely knocked down) models.
"Nevertheless, ETCM is one of the few auto players which have performed reasonably well under such difficult conditions," he said.
Ang - who was recently named Automotive Man of the Year at The New Straits Times/Maybank Car of the Year 2009 award - said ETCM expects to maintain the current momentum with a few core models and some proven models. It also plans to introduce two new models this year.
Regionally, the company will accelerate its presence in Indochina. It has set up a trading and marketing subsidiary in Cambodia to deal with Nissan vehicles there, and is taking steps to penetrate other markets, in particular Laos.
Ang said the 2009 performance, was led by a healthy demand and market acceptance of the Nissan Grand Livina.
Based on the MAA figures, the Grand Livina has officially taken over as 2009's best-seller in the non-national three-row MPV (petrol) segment with a market share of 38 per cent.
The Nissan Urvan, meanwhile, emerged as the best-seller in the window van (diesel) segment for 2009, with 30 per cent of the market - BUSINESS TIMES
PALM FUTURES EASE ON LACK OF INTEREST
Crude palm oil futures on Bursa Malaysia Derivatives closed lower in lacklustre trading yesterday, dealers said.
"There was lack of interest as players were not keen to take up new positions ahead of the long weekend," a dealer said, adding that players were still away for the Chinese New Year celebration.
The Malaysian market is closed today for the Maulidur Rasul celebration
The market also did not react to the 10 per cent drop in export figures for Feb 1 to Feb 25, as announced by cargo surveyor Intertek Testing Services.
Another cargo surveyor, Societe General de Surveillance, is also due to report lower export figures but this is expected to be offset by weaker output.
March slipped RM5 to RM2,595 per tonne, April decreased RM40 to RM2,590, May fell RM29 to RM2,595 and June dipped RM37 to RM2,579 per tonne.
Turnover rose to 17,856 lots from 11,713 lots Wednesday while open interest decreased to 82,981 contracts from 83,180 contracts previously.
On the physical market, February South shed RM5 to RM2,605 per tonne - BERNAMA
"There was lack of interest as players were not keen to take up new positions ahead of the long weekend," a dealer said, adding that players were still away for the Chinese New Year celebration.
The Malaysian market is closed today for the Maulidur Rasul celebration
The market also did not react to the 10 per cent drop in export figures for Feb 1 to Feb 25, as announced by cargo surveyor Intertek Testing Services.
Another cargo surveyor, Societe General de Surveillance, is also due to report lower export figures but this is expected to be offset by weaker output.
March slipped RM5 to RM2,595 per tonne, April decreased RM40 to RM2,590, May fell RM29 to RM2,595 and June dipped RM37 to RM2,579 per tonne.
Turnover rose to 17,856 lots from 11,713 lots Wednesday while open interest decreased to 82,981 contracts from 83,180 contracts previously.
On the physical market, February South shed RM5 to RM2,605 per tonne - BERNAMA
Thursday, February 25, 2010
CRUDE PALM OIL ENDS LITTLE CHANGED IN VOLATILE TRADE
Crude palm oil futures on Malaysia’s derivatives exchange ended little changed Thursday after moving both ways in volatile trade amid profit-taking and liquidation of positions ahead of the long weekend, trade participants said.
CPO futures opened up in the early session but gave up early gains, tumbling below MYR2,600 a metric ton despite assurances by the U.S. Federal Reserve chairman Ben Bernanke that interest rates may remain low for a while.
The benchmark May CPO contract on the Bursa Malaysia Derivatives ended MYR5 higher at MYR2,596 after moving in a MYR2,580-MYR2,615/ton range. The markets will be closed for a national holiday Friday.
A likely drawdown in palm inventories despite lower palm oil shipments prevented a significant fall in prices, as output is expected to be lower in February and March due to dry weather and the ongoing oil palm replanting program, traders and analysts said.
“Lower output and inventories may keep CPO futures steady at MYR2,550-MYR2,650/ton next week,” said a Kuala Lumpur-based trading executive.
Cargo surveyor Intertek Agri Services put Feb. 1-25 palm oil exports at 1.09 million tons, down 10% on month. Another surveyor, SGS (Malaysia) Bhd., estimated exports declined 8.9% to 1.10 million tons.
Cargo surveyors put palm oil shipments at 1.21 million tons for the same period in January.
In Indonesia, PT KPB Nusantara, a unit of PT Perkebunan Nusantara, said it sold 1,500 tons of CPO offered in a government auction Thursday.
But a further 500 tons remained unsold, as the bids were lower than its offer price of IDR7462 a kilogram.
In the cash market, palm olein for April/May/June traded at $795/ton, July/August/September traded at $795/ton, said a Singapore-based trading executive.
Cash CPO for prompt shipment was offered MYR5 lower at MYR2,605/ton.
Open interest on the BMD was 82,981 lots Thursday, down from 83,180 lots Wednesday. One lot is equivalent to 25 tons.
Some 17,856 lots of CPO were traded versus 11,714 lots Wednesday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT:
Month Close Previous Change High Low
Mar 2010 2,595 2,600 Down 05 2,619 2,590
Apr 2010 2,590 2,590 Unchanged 2,620 2,589
May 2010 2,595 2,590 Up 05 2,615 2,580
Jun 2010 2,579 2,580 Down 01 2,604 2,572
(END) Dow Jones Newswires
February 25, 2010 05:54 ET (10:54 GMT
Copyright (c) 2010 Dow Jones & Company, Inc.
CPO futures opened up in the early session but gave up early gains, tumbling below MYR2,600 a metric ton despite assurances by the U.S. Federal Reserve chairman Ben Bernanke that interest rates may remain low for a while.
The benchmark May CPO contract on the Bursa Malaysia Derivatives ended MYR5 higher at MYR2,596 after moving in a MYR2,580-MYR2,615/ton range. The markets will be closed for a national holiday Friday.
A likely drawdown in palm inventories despite lower palm oil shipments prevented a significant fall in prices, as output is expected to be lower in February and March due to dry weather and the ongoing oil palm replanting program, traders and analysts said.
“Lower output and inventories may keep CPO futures steady at MYR2,550-MYR2,650/ton next week,” said a Kuala Lumpur-based trading executive.
Cargo surveyor Intertek Agri Services put Feb. 1-25 palm oil exports at 1.09 million tons, down 10% on month. Another surveyor, SGS (Malaysia) Bhd., estimated exports declined 8.9% to 1.10 million tons.
Cargo surveyors put palm oil shipments at 1.21 million tons for the same period in January.
In Indonesia, PT KPB Nusantara, a unit of PT Perkebunan Nusantara, said it sold 1,500 tons of CPO offered in a government auction Thursday.
But a further 500 tons remained unsold, as the bids were lower than its offer price of IDR7462 a kilogram.
In the cash market, palm olein for April/May/June traded at $795/ton, July/August/September traded at $795/ton, said a Singapore-based trading executive.
Cash CPO for prompt shipment was offered MYR5 lower at MYR2,605/ton.
Open interest on the BMD was 82,981 lots Thursday, down from 83,180 lots Wednesday. One lot is equivalent to 25 tons.
Some 17,856 lots of CPO were traded versus 11,714 lots Wednesday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT:
Month Close Previous Change High Low
Mar 2010 2,595 2,600 Down 05 2,619 2,590
Apr 2010 2,590 2,590 Unchanged 2,620 2,589
May 2010 2,595 2,590 Up 05 2,615 2,580
Jun 2010 2,579 2,580 Down 01 2,604 2,572
(END) Dow Jones Newswires
February 25, 2010 05:54 ET (10:54 GMT
Copyright (c) 2010 Dow Jones & Company, Inc.
INDONESIAN OIL OUTPUT FALLS ON ENVIRONMENT RULES
JAKARTA:Indonesia’s oil production, which has slumped in recent years, could be hit by new environment laws a senior official in the energy ministry said yesterday.
Indonesia has said it would produce 965,000 barrels per day (bpd) of crude oil and condensate this year, compared with 949,100 bpd in 2009, and 1.5 million bpd in the 1990s.
“If the environment law comes into force then many oil firms could reduce activities, and oil production will fall this year,” Evita Legowo, director general oil and gas, told reporters. — Reuters
Indonesia has said it would produce 965,000 barrels per day (bpd) of crude oil and condensate this year, compared with 949,100 bpd in 2009, and 1.5 million bpd in the 1990s.
“If the environment law comes into force then many oil firms could reduce activities, and oil production will fall this year,” Evita Legowo, director general oil and gas, told reporters. — Reuters
UNILEVER STOPS BUYING PALM OIL FROM INDONESIAN PLANTER
CONSUMER goods giant Unilever has told dealers not to source palm oil from Indonesian planter Duta Palma on concerns over rainforest destruction, an Indonesian industry official said yesterday.
Unilever, the world's top palm oil buyer, blacklisted Duta Palma just two months after it halted a US$33 million (US$1 = RM3.40) supply contract with Indonesia's largest producer
Green campaigners and consumers have turned up the heat on European firms such as Unilever, saying these companies' palm oil suppliers are responsible for deforestation and peatland clearence that can speed up climate change.
"It is Unilever's decision," said Derom Bangun, vice-chairman of the Indonesian Palm Oil Board.
"Unilever did not have a supply contract with Duta Palma to begin with. They are safeguarding their supply mechanisms by asking their traders not to buy palm oil from this company after that BBC report."
The BBC documentary aired this week showed footage of Duta Palma staff clearing rainforests for oil palm estates that produce the vegetable oil used in Unilever products.
The documentary also cited Unilever as saying it will stop buying palm oil from Duta Palma.
Unilever said last year that an independent audit of palm oil suppliers in early 2009 had highlighted areas of concern to be addressed on an individual basis.
Industry watchers say Unilever's latest action could make it difficult for buyers and planters to work together in the main industry body aimed at improving palm oil's green standard, the Roundtable on Sustainable Palm oil. Duta Palma and Unilever are both members of RSPO.
"It creates a lot of suspicion between the two groups," said an RSPO official in Malaysia.
"But it highlights the difficulty of trying to stay green, especially when the Indonesian government is handing out concessions to develop oil palms."
Indonesia's Agriculture Minister Suswono said last year that Indonesia, the world's top palm oil producer, would still expand estates despite concerns that expansion would contribute to greenhouse gas emissions.
Unilever consumes around 1.3 million tonnes of palm oil each year and has pledged to buy only from certified sustainable plantations from 2015. Indonesia and Malaysia account for at least 80 per cent of the world's palm oil supply. - Reuters
Unilever, the world's top palm oil buyer, blacklisted Duta Palma just two months after it halted a US$33 million (US$1 = RM3.40) supply contract with Indonesia's largest producer
Green campaigners and consumers have turned up the heat on European firms such as Unilever, saying these companies' palm oil suppliers are responsible for deforestation and peatland clearence that can speed up climate change.
"It is Unilever's decision," said Derom Bangun, vice-chairman of the Indonesian Palm Oil Board.
"Unilever did not have a supply contract with Duta Palma to begin with. They are safeguarding their supply mechanisms by asking their traders not to buy palm oil from this company after that BBC report."
The BBC documentary aired this week showed footage of Duta Palma staff clearing rainforests for oil palm estates that produce the vegetable oil used in Unilever products.
The documentary also cited Unilever as saying it will stop buying palm oil from Duta Palma.
Unilever said last year that an independent audit of palm oil suppliers in early 2009 had highlighted areas of concern to be addressed on an individual basis.
Industry watchers say Unilever's latest action could make it difficult for buyers and planters to work together in the main industry body aimed at improving palm oil's green standard, the Roundtable on Sustainable Palm oil. Duta Palma and Unilever are both members of RSPO.
"It creates a lot of suspicion between the two groups," said an RSPO official in Malaysia.
"But it highlights the difficulty of trying to stay green, especially when the Indonesian government is handing out concessions to develop oil palms."
Indonesia's Agriculture Minister Suswono said last year that Indonesia, the world's top palm oil producer, would still expand estates despite concerns that expansion would contribute to greenhouse gas emissions.
Unilever consumes around 1.3 million tonnes of palm oil each year and has pledged to buy only from certified sustainable plantations from 2015. Indonesia and Malaysia account for at least 80 per cent of the world's palm oil supply. - Reuters
CRUDE OIL NEWS UPDATE
GLOBAL MARKETS-Stocks, oil gain as Bernanke pledges low rates
2010-02-24 21:40:59 GMT (Reuters)
NEW YORK, Feb 24 (Reuters) - Global stocks rose and the U.S. dollar fell on Wednesday after Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to keep U.S. interest rates at exceptionally low levels for an extended period.
Oil rose to $80 a barrel as Bernanke's congressional testimony buoyed hopes that low rates, which have made stocks and commodities more attractive, will spur economic growth despite bearish U.S. crude oil inventory figures. For details see: [ID:nSGE61N078]
U.S. Treasuries prices were little changed after some disappointment in the results of a five-year note auction offset the bond-positive comments from Bernanke, who calmed investors after last week's unexpected discount rate hike. [ID:nN24572751]
The surprise move raised fears that an increase in the key fed funds rate would happen sooner than had been previously thought.
But Bernanke said that a weak job market and low inflation would likely let the U.S. central bank keep interest rates low for a long time.
The dollar cut losses against the euro after an unexpected plunge in new U.S. home sales in January further dampened investor sentiment and reinforced the low rates outlook.
The euro rose to a session high of $1.3626 before paring gains to trade at $1.3533, up about 0.2 percent.
U.S. stocks rose on the promise of more cheap money as investors shrugged off a 47-year-low in the pace of new home sales and Bernanke's generally somber tone on the economy. [ID:nN23153536]
"Although we're not going to have robust growth, it is going to generate low interest rates for a long time and a lot of liquidity," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.
Sectors that were worst hit by Tuesday's sell-off rebounded to lead the way up, including financials and technology.
The Dow Jones industrial average <.DJI> closed up 91.75 points, or 0.89 percent, at 10,374.16. The Standard & Poor's 500 Index <.SPX> rose 10.64 points, or 0.97 percent, at 1,105.24. The Nasdaq Composite Index <.IXIC> added 22.46 points, or 1.01 percent, at 2,235.90.
MSCI's index of world stocks <.MIWD00000PUS> gained about 0.2 percent.
Bernanke told lawmakers that he stood prepared to continue supporting the economy with extraordinary stimulus for some time, but also said the Fed possesses a broad array of tools to remove such accommodation when the time is right.
"The Fed is trying to back away from its liquidity measures and to reduce its balance sheet somewhat, but the Fed is going keep rates low for an extended period," said John Canally, investment strategist at LPL Financial in Boston. "By keeping that language, that's what helping the markets from the new home sales number."
In the oil market, Bernanke's comments outweighed weekly U.S. inventory data from the Energy Information Administration, which showed a larger-than-expected build in crude oil inventories last week on higher imports.
"These were bearish inventory numbers. But it looks like the more Bernanke talks the lower the dollar goes and the higher equities go and that is what crude is reacting too," said Addison Armstrong of Tradition Energy.
U.S. crude for April traded up $1.14 to settle at $80 a barrel. London ICE Brent gained 84 cents to settle at $78.09 a barrel.
Gold dropped for a second straight day as uncertainties about the currency markets and the disappointing U.S. housing data took a toll on sentiment among bullion investors. [ID:nLDE61N0Y5]
Spot gold prices fell $5.50 to $1,096.10. (Reporting by Luciana Lopez, Ellen Freilich in New York; George Matlock, Jo Winterbottom, Ian Chua and Harpreet Bhal in London; writing by Herbert Lash; Editing by Leslie Adler)
2010-02-24 21:40:59 GMT (Reuters)
NEW YORK, Feb 24 (Reuters) - Global stocks rose and the U.S. dollar fell on Wednesday after Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to keep U.S. interest rates at exceptionally low levels for an extended period.
Oil rose to $80 a barrel as Bernanke's congressional testimony buoyed hopes that low rates, which have made stocks and commodities more attractive, will spur economic growth despite bearish U.S. crude oil inventory figures. For details see: [ID:nSGE61N078]
U.S. Treasuries prices were little changed after some disappointment in the results of a five-year note auction offset the bond-positive comments from Bernanke, who calmed investors after last week's unexpected discount rate hike. [ID:nN24572751]
The surprise move raised fears that an increase in the key fed funds rate would happen sooner than had been previously thought.
But Bernanke said that a weak job market and low inflation would likely let the U.S. central bank keep interest rates low for a long time.
The dollar cut losses against the euro after an unexpected plunge in new U.S. home sales in January further dampened investor sentiment and reinforced the low rates outlook.
The euro rose to a session high of $1.3626 before paring gains to trade at $1.3533, up about 0.2 percent.
U.S. stocks rose on the promise of more cheap money as investors shrugged off a 47-year-low in the pace of new home sales and Bernanke's generally somber tone on the economy. [ID:nN23153536]
"Although we're not going to have robust growth, it is going to generate low interest rates for a long time and a lot of liquidity," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.
Sectors that were worst hit by Tuesday's sell-off rebounded to lead the way up, including financials and technology.
The Dow Jones industrial average <.DJI> closed up 91.75 points, or 0.89 percent, at 10,374.16. The Standard & Poor's 500 Index <.SPX> rose 10.64 points, or 0.97 percent, at 1,105.24. The Nasdaq Composite Index <.IXIC> added 22.46 points, or 1.01 percent, at 2,235.90.
MSCI's index of world stocks <.MIWD00000PUS> gained about 0.2 percent.
Bernanke told lawmakers that he stood prepared to continue supporting the economy with extraordinary stimulus for some time, but also said the Fed possesses a broad array of tools to remove such accommodation when the time is right.
"The Fed is trying to back away from its liquidity measures and to reduce its balance sheet somewhat, but the Fed is going keep rates low for an extended period," said John Canally, investment strategist at LPL Financial in Boston. "By keeping that language, that's what helping the markets from the new home sales number."
In the oil market, Bernanke's comments outweighed weekly U.S. inventory data from the Energy Information Administration, which showed a larger-than-expected build in crude oil inventories last week on higher imports.
"These were bearish inventory numbers. But it looks like the more Bernanke talks the lower the dollar goes and the higher equities go and that is what crude is reacting too," said Addison Armstrong of Tradition Energy.
U.S. crude for April traded up $1.14 to settle at $80 a barrel. London ICE Brent gained 84 cents to settle at $78.09 a barrel.
Gold dropped for a second straight day as uncertainties about the currency markets and the disappointing U.S. housing data took a toll on sentiment among bullion investors. [ID:nLDE61N0Y5]
Spot gold prices fell $5.50 to $1,096.10. (Reporting by Luciana Lopez, Ellen Freilich in New York; George Matlock, Jo Winterbottom, Ian Chua and Harpreet Bhal in London; writing by Herbert Lash; Editing by Leslie Adler)
Wednesday, February 24, 2010
PALM OIL EDGES LOWER AS MARKET AWAITS EXPOER DATA
JAKARTA, Feb 24 – Malaysia’s palm oil futures edged down by Wednesday midday, easing further from a 6-½ week peak hit a day before as investors do not want to take positions ahead of Thursday’s release of Feb.1-25 palm oil exports, traders said.
A leak of the data normally occurs a day before Cargo surveyors Intertek Testing Services and Societe General de Surveillance unveil their estimates. Any improvement from a fall of nearly 9 per cent in the first 20 days could spur buying interest as early as in the afternoon session.
Traders said the market is still supported by sound fundamentals with the prospect of hotter-than-usual weather due to the return of El Nino weather pattern, but it is struggling to rally further as it is considered overbought.
“It is difficult to rise further after approaching the resistance level, so some people just decided to sell,” said a trader at a Kuala Lumpur-based brokerage.
He said overnight weakness in soybean prices also hurt sentiment.
The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 7 ringgit, or 0.3 per cent, at 2,628 ringgit ($777.29) per tonne.
Overall traded volume was at 3,357 lots of 25 tonnes each, far below the usual 5,000 lots.
Indonesian Trade Minister Mari Pangestu on Wednesday said that the CPO price may stabilise in a range of $700-$750 a tonne this year, with a good soy crop in southern America limiting the upside.
In the Malaysian palm oil physical market, bid/ask for February and March delivery was quoted at 2,625/2,635 ringgit per tonne in the southern and central regions. No trades were done. - REUTERS
A leak of the data normally occurs a day before Cargo surveyors Intertek Testing Services and Societe General de Surveillance unveil their estimates. Any improvement from a fall of nearly 9 per cent in the first 20 days could spur buying interest as early as in the afternoon session.
Traders said the market is still supported by sound fundamentals with the prospect of hotter-than-usual weather due to the return of El Nino weather pattern, but it is struggling to rally further as it is considered overbought.
“It is difficult to rise further after approaching the resistance level, so some people just decided to sell,” said a trader at a Kuala Lumpur-based brokerage.
He said overnight weakness in soybean prices also hurt sentiment.
The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 7 ringgit, or 0.3 per cent, at 2,628 ringgit ($777.29) per tonne.
Overall traded volume was at 3,357 lots of 25 tonnes each, far below the usual 5,000 lots.
Indonesian Trade Minister Mari Pangestu on Wednesday said that the CPO price may stabilise in a range of $700-$750 a tonne this year, with a good soy crop in southern America limiting the upside.
In the Malaysian palm oil physical market, bid/ask for February and March delivery was quoted at 2,625/2,635 ringgit per tonne in the southern and central regions. No trades were done. - REUTERS
CRUDE PALM OIL ENDS DOWN
Crude Palm Oil Ends Down, Below MYR2,600/Ton; Likely Lower Exports, Crude
Crude palm oil futures on Malaysia’s derivatives exchange ended lower Wednesday as investors liquidated long positions in anticipation of likely lower palm oil exports during the Feb. 1-25 period.
Prices fell below the psychological level of MYR2,600 a metric ton towards the end of trade on the BMD as investors fear demand may decline further due to a narrowing price gap between palm oil and its rival soyoil, trade participants said.
The benchmark May CPO contract on the Bursa Malaysia Derivatives fell MYR45, or 1.7%, to end at an intraday low of MYR2,590/ton.
The price gap between palm oil, used in the manufacture of food products and as feedstock for biodiesel, and soyoil, a substitute, has narrowed to $40/ton from $100/ton in December last year, an executive from Singapore-based trading firm said.
Prices may ease further in the next trading session to MYR2,550/ton if crude oil extends its decline, he said.
Light, sweet crude for April contract was trading 47 cents lower at $78.39 a barrel at 1000 GMT.
Crude palm oil futures on Malaysia’s derivatives exchange ended lower Wednesday as investors liquidated long positions in anticipation of likely lower palm oil exports during the Feb. 1-25 period.
Prices fell below the psychological level of MYR2,600 a metric ton towards the end of trade on the BMD as investors fear demand may decline further due to a narrowing price gap between palm oil and its rival soyoil, trade participants said.
The benchmark May CPO contract on the Bursa Malaysia Derivatives fell MYR45, or 1.7%, to end at an intraday low of MYR2,590/ton.
The price gap between palm oil, used in the manufacture of food products and as feedstock for biodiesel, and soyoil, a substitute, has narrowed to $40/ton from $100/ton in December last year, an executive from Singapore-based trading firm said.
Prices may ease further in the next trading session to MYR2,550/ton if crude oil extends its decline, he said.
Light, sweet crude for April contract was trading 47 cents lower at $78.39 a barrel at 1000 GMT.
PALM OIL RISES ON TALK OF INDIA, CHINA DEMAND
PALM oil gained yesterday on speculation that demand for the edible oil may remain strong in India and China, the world’s biggest users.
May-delivery palm oil futures advanced 0.2 per cent to RM2635 a metric ton on the Malaysia Derivatives Exchange.
“Demand growth should remain strong given the projected gross domestic product growth of around 8-10 per cent for China and India,” CIMB Group Sdn Bhd said in a report yesterday.
Palm oil also gained as soybeans, crushed to make soybean oil, advanced for a second day.
May-delivery soybeans traded in Chicago advanced 0.2 per cent to US$9.71 a bushel at 6.49 pm in Singapore. May-delivery soybean oil was unchanged at 39.3 cents a pound at 6.46 pm.
In China, September-delivery palm oil rose 1.2 per cent to settle at 7,016 yuan (US$1,028) a ton on the Dalian Commodity Exchange, extending Monday’s 2.3 per cent jump. Soybeans rose 1.4 per cent to 3,874 yuan, after climbing 1.1 per cent on Monday.
Indonesia, the second-largest palm oil producer, may keep the export tax for March unchanged at 3 per cent, Sahat Sinaga, second deputy chairman of the nation’s palm oil board, said.
Palm oil, the cheapest cooking oil, is also used as an alternative fuel additive and tends to track crude oil prices. It surged 52 per cent last year as crude oil jumped 78 per cent.
Crude oil in New York for March delivery climbed to more than US$80 a barrel for a third day in Asian trading and was last at US$79.62 a barrel at 6.52 pm Singapore time.
May-delivery palm oil futures advanced 0.2 per cent to RM2635 a metric ton on the Malaysia Derivatives Exchange.
“Demand growth should remain strong given the projected gross domestic product growth of around 8-10 per cent for China and India,” CIMB Group Sdn Bhd said in a report yesterday.
Palm oil also gained as soybeans, crushed to make soybean oil, advanced for a second day.
May-delivery soybeans traded in Chicago advanced 0.2 per cent to US$9.71 a bushel at 6.49 pm in Singapore. May-delivery soybean oil was unchanged at 39.3 cents a pound at 6.46 pm.
In China, September-delivery palm oil rose 1.2 per cent to settle at 7,016 yuan (US$1,028) a ton on the Dalian Commodity Exchange, extending Monday’s 2.3 per cent jump. Soybeans rose 1.4 per cent to 3,874 yuan, after climbing 1.1 per cent on Monday.
Indonesia, the second-largest palm oil producer, may keep the export tax for March unchanged at 3 per cent, Sahat Sinaga, second deputy chairman of the nation’s palm oil board, said.
Palm oil, the cheapest cooking oil, is also used as an alternative fuel additive and tends to track crude oil prices. It surged 52 per cent last year as crude oil jumped 78 per cent.
Crude oil in New York for March delivery climbed to more than US$80 a barrel for a third day in Asian trading and was last at US$79.62 a barrel at 6.52 pm Singapore time.
Tuesday, February 23, 2010
CRUDE PALM OIL ENDS UP SLIGHTLY AFTER HITTING SIX-WEEK HIGH
Crude palm oil futures on Malaysia’s derivatives exchange ended mostly higher Tuesday, as a continuing El Nino climate event may sap yields and cut output with production already seasonally low.
The benchmark May CPO contract on the Bursa Malaysia Derivatives rose as much as 1.2% to a fresh six-week high at MYR2,662 a metric ton on short covering and speculative buying, before ending MYR4 higher at MYR2,635/ton.
Malaysia’s key palm-oil producing states of Johor and Sabah are experiencing drier weather which may aggravate biological stress in trees and sap oil yields, analysts and traders said. The two states contribute around 19.3% of global CPO output, UOBKayHian said in a research note today. Malaysia contributes 41% of global CPO production.
El Nino is an occasional seasonal warming of the central and eastern Pacific Ocean that upsets normal weather patterns from the western seaboard of Latin America to east Africa.
“CPO’s supply fundamentals have turned bullish and may offset the marginal decline in export demand,” a Kuala Lumpur-based trading executive said.
Prices may rise in the next trading session to around MYR2,667-MYR2,678, she said.
Meanwhile, Indonesia’s PT KPB Nusantara, a unit of PT Perkebunan Nusantara, sold 3,500 metric tons of crude palm oil offered in a government auction, it said in a statement Tuesday.
But a further 1,000 tons of CPO also offered in the auction remained unsold after PT KPB withdrew its offer, as the bids were lower than its offer prices of IDR7,462-IDR7,513/kg.
In the cash market, palm olein for April/May/June delivery traded at $800/ton, $805/ton and $815/ton, and for July/August/September delivery at $797.50/ton, $805/ton and $807.50/ton, a Singapore-based trading executive said.
Cash CPO for prompt shipment was offered MYR10 higher at MYR2,660/ton.
Open interest on the BMD was 82,196 lots Tuesday, up from 81,398 lots Monday. One lot is equivalent to 25 tons.
Some 15,847 lots of CPO were traded versus 11,203 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT:
The benchmark May CPO contract on the Bursa Malaysia Derivatives rose as much as 1.2% to a fresh six-week high at MYR2,662 a metric ton on short covering and speculative buying, before ending MYR4 higher at MYR2,635/ton.
Malaysia’s key palm-oil producing states of Johor and Sabah are experiencing drier weather which may aggravate biological stress in trees and sap oil yields, analysts and traders said. The two states contribute around 19.3% of global CPO output, UOBKayHian said in a research note today. Malaysia contributes 41% of global CPO production.
El Nino is an occasional seasonal warming of the central and eastern Pacific Ocean that upsets normal weather patterns from the western seaboard of Latin America to east Africa.
“CPO’s supply fundamentals have turned bullish and may offset the marginal decline in export demand,” a Kuala Lumpur-based trading executive said.
Prices may rise in the next trading session to around MYR2,667-MYR2,678, she said.
Meanwhile, Indonesia’s PT KPB Nusantara, a unit of PT Perkebunan Nusantara, sold 3,500 metric tons of crude palm oil offered in a government auction, it said in a statement Tuesday.
But a further 1,000 tons of CPO also offered in the auction remained unsold after PT KPB withdrew its offer, as the bids were lower than its offer prices of IDR7,462-IDR7,513/kg.
In the cash market, palm olein for April/May/June delivery traded at $800/ton, $805/ton and $815/ton, and for July/August/September delivery at $797.50/ton, $805/ton and $807.50/ton, a Singapore-based trading executive said.
Cash CPO for prompt shipment was offered MYR10 higher at MYR2,660/ton.
Open interest on the BMD was 82,196 lots Tuesday, up from 81,398 lots Monday. One lot is equivalent to 25 tons.
Some 15,847 lots of CPO were traded versus 11,203 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT:
Month Close Previous Change High Low
Mar 2010 2,656 2,645 Up 11 2,668 2,640
Apr 2010 2,644 2,674 Down 30 2,666 2,630
May 2010 2,635 2,631 Up 04 2,662 2,622
Jun 2010 2,627 2,623 Up 04 2,652 2,615
SOYBEAN IMPORTS TO BE STABLE THIS YEAR
BEIJING (Dow Jones)--China's annual soybean imports are likely to remain stable compared with last year as domestic demand is less price-elastic, a senior official with a government think tank said Tuesday.
"(China's) soybean imports have reached a very high level, and it's very hard (for the volume) to either rise largely or decline sharply," Han Jun, head of the Rural Economy Department at the State Council's Development Research Center, said during a press conference.
China imported 42.55 million metric tons of soybeans last year, up 14% from the previous year.
The government will continue to protect soybean farmers' interests through its purchasing policy and stick to the policy of selling the crop at prices higher than purchase prices, Han said.
If the government sells soybeans from its more than 7 million tons of reserves at prices cheaper than the purchase prices, local prices will come under pressure, he added.
"Then the only right choice is to ask local soybean crushers to participate in soybean purchases and meanwhile provide them with subsidies to prevent them from incurring too much losses" in competition with cheaper global soybeans,Han said.
Much cheaper global soybean prices and high government selling prices forced many local soybean crushers in the country's biggest producing areas in the northeast to stop production last year, and government subsidies later helped some crushers resume production.
The market is widely expecting South America to see a record soybean harvest from March, which will further plague soybean prices.
"(China's) soybean imports have reached a very high level, and it's very hard (for the volume) to either rise largely or decline sharply," Han Jun, head of the Rural Economy Department at the State Council's Development Research Center, said during a press conference.
China imported 42.55 million metric tons of soybeans last year, up 14% from the previous year.
The government will continue to protect soybean farmers' interests through its purchasing policy and stick to the policy of selling the crop at prices higher than purchase prices, Han said.
If the government sells soybeans from its more than 7 million tons of reserves at prices cheaper than the purchase prices, local prices will come under pressure, he added.
"Then the only right choice is to ask local soybean crushers to participate in soybean purchases and meanwhile provide them with subsidies to prevent them from incurring too much losses" in competition with cheaper global soybeans,Han said.
Much cheaper global soybean prices and high government selling prices forced many local soybean crushers in the country's biggest producing areas in the northeast to stop production last year, and government subsidies later helped some crushers resume production.
The market is widely expecting South America to see a record soybean harvest from March, which will further plague soybean prices.
BREAKING NEWS-RTRS-UPDATE 1-DRY SPELL TO CURB MALAYSIA's PALM OIL OUTPUT
KUALA LUMPUR, Feb 22 (Reuters) - Malaysia may see weak palm oil production growth for a second straight year and miss government output target as yields suffer due to the current hot weather, estate owners said on Monday.
Hotter-than-usual weather, due to the resurgent El Nino weather condition, has aggravated the biological stress that oil palms are experiencing after seasonally higher production in the last quarter of 2009, they said.
Biological tree stress refers to weaker yields after a period of high productivity.
Hotter-than-usual weather, due to the resurgent El Nino weather condition, has aggravated the biological stress that oil palms are experiencing after seasonally higher production in the last quarter of 2009, they said.
Biological tree stress refers to weaker yields after a period of high productivity.
PALM FUTURES END FIRMER
CRUDE palm oil futures on Bursa Malaysia Derivatives closed firmer yesterday, bolstered by rising crude oil and soy prices.
A dealer said the expected lower production due to the hot weather, was likely to further boost market sentiment. The palm price was expected to reach around RM2,700 this week, he added.
Cargo surveyor Societe Generale de Surveillance reported that Malaysian palm oil exports for the Feb 1-22 period slipped 8.4 per cent to 865,593 tonnes from 945,311 tonnes in the first 20 days of January.
The March 2010 contract gained RM35 to RM2,645 per tonne, April 2010 increased RM75 to RM2,674 per tonne, May 2010 added RM35 to RM2,631 per tonne and June 2010 was RM33 higher at RM2,623 per tonne.
Turnover dropped to 11,203 lots from 14,925 lots last Friday while open interest rose to 81,398 contracts from 80,465 contracts.
The dealer said there was no increase in volume as Chinese players were still in holiday mood after the Lunar New Year.
On the physical market, March South rose to RM2,650 per tonne from RM2,610 per tonne.
A dealer said the expected lower production due to the hot weather, was likely to further boost market sentiment. The palm price was expected to reach around RM2,700 this week, he added.
Cargo surveyor Societe Generale de Surveillance reported that Malaysian palm oil exports for the Feb 1-22 period slipped 8.4 per cent to 865,593 tonnes from 945,311 tonnes in the first 20 days of January.
Turnover dropped to 11,203 lots from 14,925 lots last Friday while open interest rose to 81,398 contracts from 80,465 contracts.
The dealer said there was no increase in volume as Chinese players were still in holiday mood after the Lunar New Year.
On the physical market, March South rose to RM2,650 per tonne from RM2,610 per tonne.
Zeti: Malaysia clearly on track to economic recovery
MALAYSIA is on the path to economic recovery, Bank Negara Malaysia's (BNM) governor says, ahead of unveiling economic data for the fourth quarter of 2009 tomorrow.
"We are already clearly on the path to recovery. The indicators are that the economic performance is better than expected," Tan Sri Zeti Akhtar Aziz said.
Fourth-quarter data tomorrow will show if Malaysia managed to emerge from its first recession in a decade.
Zeti also reiterated that any adjustment in interest rates would be to achieve a "normalisation" and not a tightening of policy. "Monetary policy will continue to be supportive of the economic recovery process," she said.
Economists expect Malaysia to return to positive growth in the final quarter, after three straight quarters of negative growth.
AmResearch's senior economist Manokaran Mottain recently upgraded his fourth-quarter economic growth to 3.5 per cent from 1.5 per cent.
"We are no longer in extraordinary circumstances. We have come out of that kind of environment," Zeti said after launching Thomson Reuters' new Islamic finance product in Kuala Lumpur yesterday.
The product, known as the Islamic Finance Gateway, is a global platform and directory comprising details and links to Islamic finance professionals, rating agencies, industry standards bodies, index providers and scholars, among other things.
It is available on its flagship Thomson Reuters 3000 Xtra desktop.
"The timely access to a broad range of key information on Islamic finance - including on the product terms, structures and Syariah rulings - will contribute to enhanced transparency in the Islamic financial markets," Zeti said of the product.
RINGGIT RISES AGAINST US DOLLAR
THE ringgit closed higher yesterday in line with gains in Asian currencies, dealers said.
At 5pm, the local currency was traded at 3.3990/4030 compared with 3.4120/4150 at last Friday's close.
The dealers said Asian currencies traded higher yesterday, led by the South Korean won and Indonesian rupiah, on risk appetite.
"Signs of the global economic recovery building momentum has spurred demand for riskier assets," a dealer explained.
Against the Singapore dollar, the ringgit traded slightly lower at 2.4108/4160 from 2.4103/4146 last Friday but strengthened against the Japanese yen at 3.7107/7155 compared with 3.7176/7233 previously.
The local unit was little changed against the British pound at 5.2535/2617 from 5.2538/2591 last Friday but was lower against the euro at 4.6206/6277 from 4.6038/6096 previously.
INTERBANK RATES
SHORT-TERM interbank rates remained stable yesterday as Bank Negara Malaysia actively intervened in the money market by issuing tenders to keep them in check, dealers said.
The overnight rate was quoted at 2.0 per cent while the one-week, two-week and three-week rates hovered between 2.02 and 2.06 per cent.
In the morning, Bank Negara called for four conventional tenders, one Al-Wadiah tender and a repo tender.
Total liquidity surplus in the conventional system decreased to RM31.72 billion from the RM37.94 billion estimated earlier while in Islamic funds, it declined to RM3.13 billion from RM6.67 billion.
Later, the central bank conducted a conventional tender for RM31.7 billion of one-day money and an Al-Wadiah tender for RM3.1 billion of one-day money.
KLIBOR
THE three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives closed untraded yesterday, dealers said.
As at the 11am fixing, the three-month KLIBOR was at 2.24 per cent.
At 5pm, the local currency was traded at 3.3990/4030 compared with 3.4120/4150 at last Friday's close.
The dealers said Asian currencies traded higher yesterday, led by the South Korean won and Indonesian rupiah, on risk appetite.
Against the Singapore dollar, the ringgit traded slightly lower at 2.4108/4160 from 2.4103/4146 last Friday but strengthened against the Japanese yen at 3.7107/7155 compared with 3.7176/7233 previously.
The local unit was little changed against the British pound at 5.2535/2617 from 5.2538/2591 last Friday but was lower against the euro at 4.6206/6277 from 4.6038/6096 previously.
INTERBANK RATES
SHORT-TERM interbank rates remained stable yesterday as Bank Negara Malaysia actively intervened in the money market by issuing tenders to keep them in check, dealers said.
The overnight rate was quoted at 2.0 per cent while the one-week, two-week and three-week rates hovered between 2.02 and 2.06 per cent.
In the morning, Bank Negara called for four conventional tenders, one Al-Wadiah tender and a repo tender.
Total liquidity surplus in the conventional system decreased to RM31.72 billion from the RM37.94 billion estimated earlier while in Islamic funds, it declined to RM3.13 billion from RM6.67 billion.
Later, the central bank conducted a conventional tender for RM31.7 billion of one-day money and an Al-Wadiah tender for RM3.1 billion of one-day money.
KLIBOR
THE three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives closed untraded yesterday, dealers said.
As at the 11am fixing, the three-month KLIBOR was at 2.24 per cent.
Monday, February 22, 2010
PALM OIL PLANTATION STOCKS
| Company | Last | Change | Open | High | Low | Volume | Est. Landbank |
 Wilmar | 6.45 | +0.06 | 6.45 | 6.50 | 6.42 | 3630000 | 500,000ha |
 Sime Darby | 8.58 | +0.06 | 8.57 | 8.61 | 8.57 | 3452800 | 524,626ha |
| IOI Corp | 5.35 | +0.04 | 5.32 | 5.38 | 5.31 | 4089300 | 251,000ha |
| Kuala Lumpur Kepong | 16.82 | +0.06 | 16.94 | 16.94 | 16.78 | 1450400 | 360,000ha |
| Golden Agri | 0.55 | +0.005 | 0.55 | 0.555 | 0.545 | 49540000 | 637,361ha |
 Astra Agro | 24400 | +200 | 24400 | 24450 | 24300 | 514500 | 258,900ha |
| Indofood Agri | 2.03 | +0.01 | 2.06 | 2.07 | 2.02 | 11470000 | 545,243ha |
| Genting Plantations | 6.18 | +0.16 | 6.10 | 6.20 | 6.10 | 1754200 | 164,000ha |
| London Sumatra | 8850 | +100 | 8850 | 8900 | 8750 | 2824000 | 169,909ha |
| Boustead Holdings | 3.40 | 0.00 | 3.41 | 3.43 | 3.39 | 1290000 | 100,000ha |
| United Plantations | 13.34 | -0.06 | 13.40 | 13.40 | 13.32 | 12300 | 80,874ha |
| Kulim | 7.11 | 0.00 | 7.11 | 7.12 | 7.10 | 32400 | 124,660ha |
| IJM Plantations | 2.44 | +0.01 | 2.45 | 2.50 | 2.44 | 25600 | 70,000ha |
| Sampoerna Agro | 2725 | -25 | 2800 | 2825 | 2700 | 2074500 | 169,000ha |
| Bakrie Sumatera | 520 | 0 | 520 | 520 | 510 | 49544500 | 80,000ha |
FCPO NEWS UPDATE
CRUDE PALM OIL ENDS UP ON BOARD-BASED RALLY IN COMMODITIES, EQUITIES
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday, snapping a two-day losing streak and rising to their highest level in six weeks amid a broad-based rally across most asset classes, said trade participants.
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday, snapping a two-day losing streak and rising to their highest level in six weeks amid a broad-based rally across most asset classes, said trade participants.
The benchmark May CPO contract on the Bursa Malaysia Derivatives ended MYR35 higher at MYR2,631 a metric ton after rising to an intraday high of MYR2,638/ton, its highest level since Jan. 11.
Soyoil futures on the Chicago Board of Trade traded higher during Asian hours, rising 30 points to 38.82 cents a pound by the end of trade on the BMD.
Tightness in CPO supply also kept prices above the psychological level of MYR2,600/ton, said a Kuala Lumpur-based trading executive.
Many traders said February output may have declined by 10% on month and may lead to a further drawdown in palm oil inventories from 2 million tons in January.
“Investors also ignored lower palm oil export data as supply tightness and lower output will offset the weakness in demand,” said a Kuala Lumpur-based analyst.
Cargo surveyor Intertek estimated that palm oil exports during the first 20 days of February fell 8.6% on month to 844,865 tons. Another surveyor, SGS (Malaysia) Bhd., put exports at 865,593 tons for the same period.
Some trade participants said the uptrend will likely continue, but others pointed out that palm oil’s discount to soyoil has narrowed significantly, which may prompt buyers to switch to soyoil.
“The discount to soyoil has fallen to around $40/ton from $140/ton, when palm oil prices rose to around MYR2,700 levels during the December-January period,” said a Kuala Lumpur-based broker.
Palm oil, used for food and as feedstock to produce biodiesel, may ease from its highs as dwindling demand for palm-based biodiesel may lead to a domestic biodiesel supply glut and place pressure on the BMD.
Exports of palm-based biodiesel to the U.S. dwindled in 2009 and may decline further as the U.S. Environmental Protection Agency has yet to determine whether palm oil based biodiesel complies with a 50% greenhouse-gas savings requirement needed to benefit from a U.S. government mandate.
Until the EPA is able to determine whether palm-based biodiesel, or palm methyl ester, meets the greenhouse gas savings target, “palm biodiesel can’t be sold to the U.S. and we would miss the whole summer season, when palm biodiesel is the most popular choice,” said T.C. Long, managing director at Vance Bioenergy Sdn Bhd. Palm-based biodiesel tends to thicken in cold weather due to a high melting point, so sales tend to slow during the winter months.
The EPA said it hasn’t had sufficient time to complete a lifecycle greenhouse gas impact assessment for palm methyl ester, grain sorghum ethanol and woody pulp ethanol, and it may be another six months before it can determine whether they meet the minimum 50% greenhouse gas savings rate for RFS2 biomass-based diesel.
Toughening environmental criteria from major biodiesel markets such as Europe and the U.S. could cripple the industry, as the “non-trade barriers that are currently in place or may be implemented in Europe and the U.S. have made exports of palm methyl ester (PME) from Malaysia increasingly difficult,” Long said.
In the cash market, palm olein for April/May/June delivery traded at $802.50/ton and $805/ton, said a Singapore-based trader.
Cash CPO for prompt shipment was offered MYR40 higher at MYR2,650/ton.
Open interest on the BMD was 81,398 lots Monday, up from 77,109 lots Friday. One lot is equivalent to 25 tons.
Some 11,203 lots of CPO were traded versus 11,910 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT:
Month Close Previous Change High Low
Mar 2010 2,645 2,610 Up 35 2,645 2,632
Apr 2010 2,674 2,599 Up 75 2,674 2,629
May 2010 2,631 2,596 Up 35 2,638 2,621
Jun 2010 2,623 2,590 Up 33 2,627 2,612
LATEST ECONOMIC NEWS
Greece says borrowing needs covered until mid-March
LONDON (Reuters) - Greece's borrowing needs are covered until mid-March and Athens so far is meeting goals set out in an austerity plan, Greek Prime Minister George Papandreou said in an interview with BBC television broadcast on Sunday.
Market concerns about Greece's debt pile have hit the euro in recent weeks.
"At this point we don't have a need for borrowing, our borrowing needs are covered until mid-March," he said in response to a question on whether there would be any new Greek bond issuance next week.
Papandreou said that despite street demonstrations against austerity measures his government has taken to tackle the debt crisis, he believed there was broad support in Greek society for painful economic reforms.
"Even though there are austerity measures and they do hurt, we have the support right now for the austerity measures which is around 50 to 60 percent of the population, and the government also has that support," Papandreou said.
"What we're seeing here, and I haven't seen this except during the Olympic Games in 2004, is a real sense of unity by the Greek people of wanting to make a change," he said, blaming the previous administration for Greece's debt woes.
Papandreou said European Union partners should continue to offer political support to Athens as it battles to get its public finances back onto a sustainable path.
"Let us together with the EU authorities, the Commission and the European Central Bank, let's sit down, let's look at how our progress is doing, how we're doing in the stability and growth plan that we have tabled," he said.
"We're on target, beyond target on Jan statistics so we're doing well. If we do need extra measures, we will take extra measures in order to reduce our deficit this year by 4 percent. We're ready to do so if necessary."
Papandreou said that while Greece was not asking for financial support from EU partners, it did need strong political backing as it battled to restore its credibility with financial markets.
This was particularly important for Greece to be able to borrow at lower interest rates than it was currently facing, he said.
"We need the help so that we can borrow at the same rate as other countries, not at high rates which undermine our ability to make the changes we need to make," he said.
LONDON (Reuters) - Greece's borrowing needs are covered until mid-March and Athens so far is meeting goals set out in an austerity plan, Greek Prime Minister George Papandreou said in an interview with BBC television broadcast on Sunday.
Market concerns about Greece's debt pile have hit the euro in recent weeks.
"At this point we don't have a need for borrowing, our borrowing needs are covered until mid-March," he said in response to a question on whether there would be any new Greek bond issuance next week.
Papandreou said that despite street demonstrations against austerity measures his government has taken to tackle the debt crisis, he believed there was broad support in Greek society for painful economic reforms.
"Even though there are austerity measures and they do hurt, we have the support right now for the austerity measures which is around 50 to 60 percent of the population, and the government also has that support," Papandreou said.
"What we're seeing here, and I haven't seen this except during the Olympic Games in 2004, is a real sense of unity by the Greek people of wanting to make a change," he said, blaming the previous administration for Greece's debt woes.
Papandreou said European Union partners should continue to offer political support to Athens as it battles to get its public finances back onto a sustainable path.
"Let us together with the EU authorities, the Commission and the European Central Bank, let's sit down, let's look at how our progress is doing, how we're doing in the stability and growth plan that we have tabled," he said.
"We're on target, beyond target on Jan statistics so we're doing well. If we do need extra measures, we will take extra measures in order to reduce our deficit this year by 4 percent. We're ready to do so if necessary."
Papandreou said that while Greece was not asking for financial support from EU partners, it did need strong political backing as it battled to restore its credibility with financial markets.
This was particularly important for Greece to be able to borrow at lower interest rates than it was currently facing, he said.
"We need the help so that we can borrow at the same rate as other countries, not at high rates which undermine our ability to make the changes we need to make," he said.
Sunday, February 21, 2010
DIRAMALKAN HARGA CPO HARI ISNIN JATUH
Salam para traders,
Berdasarkan beberapa kajian (F.A) yang dibuat pada hujung minggu ini, saya menjangkakan harga CPO akan jatuh dibawah paras 2590. Jika tiada sebarang berita yang boleh melonjakkan kenaikan CPO, ia akan kekal berada dibawah paras 2600.
Sekian
Happy Trading.....
Berdasarkan beberapa kajian (F.A) yang dibuat pada hujung minggu ini, saya menjangkakan harga CPO akan jatuh dibawah paras 2590. Jika tiada sebarang berita yang boleh melonjakkan kenaikan CPO, ia akan kekal berada dibawah paras 2600.
Sekian
Happy Trading.....
Subscribe to:
Posts (Atom)