CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower yesterday on lack of a strong buying interest, dealers said.
They said the weaker overnight soyaoil prices on the Chicago Board of Trade and the Dalian Commodity Exchange encouraged players to trim their position.
At the close, April fell RM35 to settle at RM2,599, May declined RM34 to RM2,565 per tonne, June dropped RM41 to RM2,534 and July eased RM37 to RM2,521.
Turnover, however, increased to 14,711 lots from 10,656 lots on Thursday and open interests rose to 78,501 contracts from 78,414 contracts previously.
On the physical market, April South slipped to RM2,610 on Thursday.
"I wouldn't say it is a bear market but players are taking out weather premium from palm prices which had caused prices to move up," said a trader.
Traders expect the market to test lower levels around RM2,500 next week on the view that supply may increase as rains would help boost production.
RUBBER
THE Malaysian rubber market closed higher yesterday on strong demand, dealers said.
They said firmer rubber prices on the Tokyo Commodity Exchange also lifted buying sentiment in the local market.
"The market fundamentals remain firm following tight supply conditions in major producing countries,' a dealer said.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 closed 7.5 sen higher at 1,044.5 sen per kg and latex-in-bulk rose 5 sen to 739.5 sen per kg.
The unofficial closing price for tyre-grade SMR 20 gained 8 sen to 1,048.5 sen per kg and latex-in-bulk rose 4.5 sen to 741.5 sen per kg.
TIN
THE Kuala Lumpur Tin Market (KLTM) closed higher yesterday by US$50 (US$1.00 = RM3.34) to settle at US$17,540 per tonne, despite the downtrend on the London Metal Exchange (LME), dealers said.
The tin price on the LME, which usually influences price direction for the KLTM,fell US$90 to US$17,460 per tonne.
"The local tin market was firmer today with lots of bidding,especially from foreign buyers," a dealer said.
On the local front, buyers bid for 75 tonnes while sellers offered 40 tonnes.
Yesterday turnover increased to 56 tonnes from 45 tonnes on Thursday. The price differential between the KLTM and the LME widened to a premium of US$435 per tonne from US$295 per tonne previously. - Bernama
Saturday, March 27, 2010
Friday, March 26, 2010
DJ Asian Crude Palm Oil Ends Down; MYR2,550 Key Support Breached
JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended lower Friday, breaching a key support level as participants squared off positions ahead of the weekend, said traders. The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR41 lower at the intraday low of MYR2,534 a metric ton, after trading in a range of MYR2,534-MYR2,565. Trade was thin and sluggish for most of the day, but downward momentum built up after prices breached the crucial MYR2,550 support level, said traders. "Breaching the MYR2,550 level means prices will likely trade downwards to MYR2,500, rather than aim to break the MYR2,600 resistance," said a Kuala Lumpur-based trader. CPO prices have been constantly testing the MYR2,550 support and MYR2,600 this week, but prices barely breached either levels until today. "There is a bit of bearish sentiment that is weighing on prices. Exports are higher on month, but that's to be expected, as February was a short month compared with March. Production is rising, however, and that's prompting fears of rising stock levels," said another Kuala Lumpur-based trader. Cash market prices for forward months like July, August and September are trading at a discount to nearer months, likely indicative that stocks are tipped to rise in the next few months, 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 lower at MYR2,610/ton. Open interest on the BMD was 78,501 lots, up from 78,414 lots Thursday. One lot is equivalent to 25 tons. A total of 14,711 lots of CPO were traded versus 10,656 lots Thursday.
Closing BMD CPO futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Apr 2010 2,599 2,634 Dn 35 2,626 2,595 May 2010 2,565 2,599 Dn 34 2,590 2,562 Jun 2010 2,534 2,575 Dn 41 2,565 2,534 Jul 2010 2,521 2,558 Dn 37 2,545 2,521 -By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277; fawziah.selamat@dowjones.com
DJ MARKET TALK:BMD CPO Down In Technical Trade;MYR2,550 Key Level
[Dow Jones] BMD CPO futures down in technical trading; Prices hovering around key MYR2,550 level, say traders. Benchmark June CPO contract down MYR26 at MYR2,549/ton. No trades yet reported in cash market, trading activity on BMD thin, says a Singapore-based trader. Adds participants eager to see if MYR2,550 level will hold; if prices go well below MYR2,550 without possibility of being pushed up by bulls, next support level will be MYR2,500. (fawziah.selamat@dowjones.com)
Call us in Jakarta: 62 21 3983 1277
Call us in Jakarta: 62 21 3983 1277
DJ MARKET TALK: BMD CPO May Open MYR10 Down On Overnight Soyoil
[Dow Jones] BMD CPO futures expected to open MYR10 lower on overnight soyoil futures. May soyoil ended 38 points lower at 38.70 cents/pound yesterday on CBOT; last trading 20 points higher on e-CBOT. Today, CPO may test MYR2,550 support level--significant because if breached, prices may consolidate at lower
level, likely MYR2,500, says a Kuala Lumpur-based trader. Adds if support holds, market may move higher, test resistance level of MYR2,600. Benchmark June CPO contract ended MYR15 higher at MYR2,575/ton yesterday. (fawziah.selamat@dowjones.com)
Call us in Jakarta: 62 21 3983 1277
level, likely MYR2,500, says a Kuala Lumpur-based trader. Adds if support holds, market may move higher, test resistance level of MYR2,600. Benchmark June CPO contract ended MYR15 higher at MYR2,575/ton yesterday. (fawziah.selamat@dowjones.com)
Call us in Jakarta: 62 21 3983 1277
CPO futures rise on strong buying
CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher yesterday on strong buying, dealers said.
They said the positive palm oil export figures for March 1-25 also boosted buying sentiment in the market.
Cargo surveyor Intertek Testing Services reported that Malaysian palm oil exports for March 1-25 rose 2.3 per cent to 1.114 million tonnes from the 1.089 million tonnes recorded in the same period last month.
Another cargo surveyor, Societe Generale de Surveillance said Malaysian palm oil exports for the first 25 days of March 2010, increased 2.1 per cent to 1.125 million tonnes from 1.102 million tonnes previously.
April 2010 and May 2010 climbed RM22 each to RM2,634 a tonne and RM2,599 respectively while June 2010 increased RM15 to RM2,575 and July 2010 added RM12 to RM2,558.
Turnover, however, declined to 10,656 lots from 13,662 lots yesterday while open interests increased to 78,414 contracts from 77,953 previously.
On the physical market, April South increased to RM2,640 a tonne from RM2,610 a tonne previously.
RUBBER
THE Malaysian rubber market closed higher yesterdayin line with firmer rubber prices on the Tokyo Commodity Exchange, dealers said.
They said the tight supply condition in major producing countries due to a prolonged dry weather has lifted pushed up prices.
"The market fundamentals remain firm," a dealer said, adding that there were also enquiries for SMR20 from South Africa.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 closed 3 three sen higher at 1,037.0 sen a per kg and latex-in-bulk rose 1.5 sen to 734.5 sen per kg.
The unofficial closing price for tyre-grade SMR 20 gained 7 sen to 1,040.5 sen per kg and latex-in-bulk rose 3.5 sen to 737.0 sen per kg.
TIN
THE Kuala Lumpur Tin Market(KLTM) closed lower yesterday by US$10 (US$1.00 = RM3.34) to settle at US$17,490 per tonne in line with the downtrend on the London Metal Exchange (LME), dealers said.
The tin price on LME, which usually influences price direction for the KLTM, fell US$50 to US$17,550 per tonne.
On the local front, buyers bid for 45 tonnes while sellers offered 55 tonnes.
Yesterday turnover declined to 45 tonnes from 61 tonnes on Wednesday.
The price differential between the KLTM and the LME widened to a premium of US$295 per tonne from US$255 per tonne on Wednesday. - Bernama
They said the positive palm oil export figures for March 1-25 also boosted buying sentiment in the market.
Cargo surveyor Intertek Testing Services reported that Malaysian palm oil exports for March 1-25 rose 2.3 per cent to 1.114 million tonnes from the 1.089 million tonnes recorded in the same period last month.
Another cargo surveyor, Societe Generale de Surveillance said Malaysian palm oil exports for the first 25 days of March 2010, increased 2.1 per cent to 1.125 million tonnes from 1.102 million tonnes previously.
April 2010 and May 2010 climbed RM22 each to RM2,634 a tonne and RM2,599 respectively while June 2010 increased RM15 to RM2,575 and July 2010 added RM12 to RM2,558.
Turnover, however, declined to 10,656 lots from 13,662 lots yesterday while open interests increased to 78,414 contracts from 77,953 previously.
On the physical market, April South increased to RM2,640 a tonne from RM2,610 a tonne previously.
RUBBER
THE Malaysian rubber market closed higher yesterdayin line with firmer rubber prices on the Tokyo Commodity Exchange, dealers said.
They said the tight supply condition in major producing countries due to a prolonged dry weather has lifted pushed up prices.
"The market fundamentals remain firm," a dealer said, adding that there were also enquiries for SMR20 from South Africa.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 closed 3 three sen higher at 1,037.0 sen a per kg and latex-in-bulk rose 1.5 sen to 734.5 sen per kg.
The unofficial closing price for tyre-grade SMR 20 gained 7 sen to 1,040.5 sen per kg and latex-in-bulk rose 3.5 sen to 737.0 sen per kg.
TIN
THE Kuala Lumpur Tin Market(KLTM) closed lower yesterday by US$10 (US$1.00 = RM3.34) to settle at US$17,490 per tonne in line with the downtrend on the London Metal Exchange (LME), dealers said.
The tin price on LME, which usually influences price direction for the KLTM, fell US$50 to US$17,550 per tonne.
On the local front, buyers bid for 45 tonnes while sellers offered 55 tonnes.
Yesterday turnover declined to 45 tonnes from 61 tonnes on Wednesday.
The price differential between the KLTM and the LME widened to a premium of US$295 per tonne from US$255 per tonne on Wednesday. - Bernama
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.
(END) Dow Jones Newswires
March 25, 2010 07:03 ET (11:03 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
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; fawziah.selamat@dowjones.com
(END) Dow Jones Newswires
March 25, 2010 07:03 ET (11:03 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
Thursday, March 25, 2010
DJ MARKET TALK: BMD CPO Up;Exports,Crude,Soyoil Support;Trade Thin
[Dow Jones] BMD CPO futures up; export data, higher crude oil, soyoil support, say traders. Benchmark June CPO contract up MYR12 at MYR2,572/ton. Trade sluggish at around 7,000 lots, half usual trading activity, say traders. "The export data fell within market expectations and there really isn't anything excessively bearish or bullish in the market to get prices out of the MYR2,550-MYR2,600 range," says a Kuala Lumpur-based trader. A Singapore-based trader says MYR2,550-MYR2,600 range will likely hold until end-March.
(fawziah.selamat@dowjones.com)
1725 Malaysia Time
(fawziah.selamat@dowjones.com)
1725 Malaysia Time
DJ Indonesia To Raise April CPO Export Tax To 4.5% From 3% -Trade Min
JAKARTA (Dow Jones)--Indonesia will raise its export tax on crude palm oil in April to 4.5% from the current 3%, a senior government official said Thursday.
Due to rising global palm oil prices, the export tax and base price of CPO will be raised for the duration of April, said Diah Maulida, director general of foreign trade at the trade ministry.
The base price of CPO will be raised to $752 a metric ton from the current $708/ton, she said.
-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277;
fawziah.selamat@dowjones.com
Due to rising global palm oil prices, the export tax and base price of CPO will be raised for the duration of April, said Diah Maulida, director general of foreign trade at the trade ministry.
The base price of CPO will be raised to $752 a metric ton from the current $708/ton, she said.
-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277;
fawziah.selamat@dowjones.com
DJ Malaysia March 1-25 Palm Oil Exports 1.13 Mln Tons -SGS
KUALA LUMPUR (Dow Jones)--Malaysia's palm oil exports during the March 1-25 period are estimated to have risen 2.1% on month to 1.13 million metric tons, cargo surveyor SGS (Malaysia) Bhd. said Thursday.
The estimate is close to market expectations of a rise in shipments to around 1.1 million tons.
Earlier in the day, another surveyor, Intertek Agri Services, put exports at 1.11 million tons for the March 1-25 period.
The following are the major items in the SGS estimate:
(All figures in metric tons)
March 1-25 vs February 1-25
RBD Palm Olein 492,155 vs 439,038
RBD Palm Oil 115,403 vs 99,362
RBD Palm Stearin 108,900 v 139,420
Crude Palm Oil 195,731 vs 247,364
Total* 1,125,412 vs 1,101,771
*Palm oil product volumes don't add up to total as some products aren't
included.
SGS Malaysia is a division of the Switzerland-based Societe Generale de
Surveillance Group.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com
The estimate is close to market expectations of a rise in shipments to around 1.1 million tons.
Earlier in the day, another surveyor, Intertek Agri Services, put exports at 1.11 million tons for the March 1-25 period.
The following are the major items in the SGS estimate:
(All figures in metric tons)
March 1-25 vs February 1-25
RBD Palm Olein 492,155 vs 439,038
RBD Palm Oil 115,403 vs 99,362
RBD Palm Stearin 108,900 v 139,420
Crude Palm Oil 195,731 vs 247,364
Total* 1,125,412 vs 1,101,771
*Palm oil product volumes don't add up to total as some products aren't
included.
SGS Malaysia is a division of the Switzerland-based Societe Generale de
Surveillance Group.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com
DJ MARKET TALK: BMD CPO Tad Up; Exports Up But Within Expectations
[Dow Jones] BMD CPO futures up slightly; exports up but within market expectations, say traders. Benchmark June CPO contract up MYR8 at MYR2,568/ton. Malaysia's March 1-25 exports up 2.3% on month at 1.11 million tons, according to estimates by Intertek; estimate within market expectations of 1.10 million
tons. May soyoil futures in after-hours trade up 20 points at 39.28 cents/pound; also providing support, say traders. Market awaits another set of export estimates from SGS due later afternoon. (fawziah.selamat@dowjones.com)
tons. May soyoil futures in after-hours trade up 20 points at 39.28 cents/pound; also providing support, say traders. Market awaits another set of export estimates from SGS due later afternoon. (fawziah.selamat@dowjones.com)
DJ MARKET TALK: Malaysia Plantation Stocks Ignore Biodiesel Plan
0321 GMT [Dow Jones] Malaysian plantation stocks little changed as government's plan to make sale of biodiesel mandatory in stages from June 2011 fails to spur interest; plan calls for diesel to be blended with biodiesel derived from palm oil at a 95%:5% ratio, with blend to be introduced in several central Malaysian states before being gradually expanded nationwide; analysts estimate implementation of 5% blend would absorb up to 500,000 tons of palm oil annually, equivalent to 3% of Malaysia's annual palm oil production. "The government has been saying for a number of years now that they want to introduce biodiesel, but past target dates for implementation have come and gone. The market is obviously skeptical about this latest mid-2011 implementation target," says analyst at local brokerage. KL Plantation Index flat at 6412.34; IOI Corp (1961.KU) unchanged at MYR5.41, KL Kepong (2445.KU) down 0.1% at MYR16.36.
(benjamin.low@dowjones.com)
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
(benjamin.low@dowjones.com)
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
DJ MARKET TALK: India Soybean Futures Likely Down On CBOT Decline
0330 GMT [Dow Jones] India April NCDEX soybean futures likely lower, tracking overnight 0.8% decline in CBOT, weak soymeal export demand; India February soymeal exports down 42.6% on year to 218,748 metric tons. "High temperature in most parts of India has led to a decline in the vegetable oil demand," says Indore-based trader; edible oil consumption drops in summer owing to less demand for fried food. Trader expects soybean in INR2,000-INR2,044/100 kg range, soyoil in INR455-INR461/10 kg band; soybean last closed 2% lower at INR2,015, soyoil down 1.1% at INR458. (ravi.bhushan@dowjones.com)
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
DJ Malaysia March 1-25 Palm Oil Exports 1.11 Mln Tons -Intertek
KUALA LUMPUR (Dow Jones)--Malaysia's palm oil exports during the March 1-25 period are estimated up 2.3% on month at 1.11 million metric tons, cargo Surveyor Intertek Agri Services said Thursday. The estimate is close to market expectations of 1.1 million tons.
Another surveyor, SGS (Malaysia) Bhd., is expected to issue its estimate later Thursday.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
Another surveyor, SGS (Malaysia) Bhd., is expected to issue its estimate later Thursday.
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
DJ MARKET TALK: BMD CPO May Open MYR10 Down On Overnight Soyoil
[Dow Jones] BMD CPO futures expected to open MYR10 lower on soyoil losses overnight; March 1-25 export estimates expected steady on month. May soyoil ended 46 points lower at 39.08 cents/pound; trading 33 points higher on Globex. March 1-25 export data due from cargo surveyors today; market expecting exports at 1.1 million tons, similar to same-period exports last month. "March exports are usually higher compared to February, as February is a shorter month. So data that show March exports as flat or lower than February's would be seen as bearish," says Kuala Lumpur-based trader. Benchmark June CPO contract ended MYR31 lower at MYR2,560/ton yesterday. (fawziah.selamat@dowjones.com) Call us in Jakarta: 62 21 3983 1277
CPO futures end lower on lack of buying interest
CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower yesterday on lack of strong buying interest, dealers said.
They said lower crude oil and soyaoil prices also weighed down the buying momentum.
"Some players stayed on the sidelines awaiting fresh news on the direction of palm oil exports," a dealer said.
"The market closed lower as bearish underlying fundamentals kept a lid on upside movement (and) weak crude oil laid the ground for speculative selling," said a trader at a local brokerage.
Cargo surveyors Intertek Testing Services (ITS) and Societe Generale de Surveillance (SGS), will unveil Malaysia's palm oil export figures for March 1-25 today.
At close, April 2010 fell RM32 to RM2,612 per tonne, May 2010 declined RM33 to RM2,577, June 2010 eased RM31 to RM2,560 and July 2010 slipped RM34 to RM2,546.
Turnover, however, increased to 13,662 lots from 11,742 lots on Tuesday and open interests declined to 77,953 contracts from 78,158 contracts previously.
On the physical market, April South declined to RM2,610 per tonne from the RM2,650 per tonne yesterday.
RUBBER
THE Malaysian rubber market closed lower yesterday in quiet trading, dealers said.
Dealers said players stayed on the sidelines awaiting a drop in prices.
“The market undertone is still firm, supported by tight supply, as rubber production in major producing countries has been falling due to the continued dry weather,” a dealer said.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 3 sen lower at 1,034.0 sen per kg and latex-in-bulk slipped two sen to 733.0 sen per kg.
The unofficial closing price for tyre-grade SMR 20 and latex-in-bulk shed 1 sen each to 1,033.5 sen per kg and 733.5 sen per kg respectively.
TIN
THE tin price on the Kuala Lumpur Tin Market (KLTM) closed lower yesterday by US$100 (US$1.00 = RM3.34) to settle at US$17,500 per tonne on a technical correction, dealers said.
The dealers said there was only scattered buying after Tuesday record high of US$17,600, as the market participants were cautious.
The tin price on the London Metal Exchange (LME), however, rose by US$40 to US$17,600 per tonne. On the local front, bids totalled 45 tonnes against offers of 100 tonnes.
Yesterday's turnover declined to 61 tonnes from 75 tonnes on Tuesday, with the participation of Japanese, European and local traders.
The price differential between the KLTM and the LME narrowed to US$255 per tonne from the US$395 per tonne on Tuesday. - Agencies
They said lower crude oil and soyaoil prices also weighed down the buying momentum.
"Some players stayed on the sidelines awaiting fresh news on the direction of palm oil exports," a dealer said.
Cargo surveyors Intertek Testing Services (ITS) and Societe Generale de Surveillance (SGS), will unveil Malaysia's palm oil export figures for March 1-25 today.
At close, April 2010 fell RM32 to RM2,612 per tonne, May 2010 declined RM33 to RM2,577, June 2010 eased RM31 to RM2,560 and July 2010 slipped RM34 to RM2,546.
Turnover, however, increased to 13,662 lots from 11,742 lots on Tuesday and open interests declined to 77,953 contracts from 78,158 contracts previously.
On the physical market, April South declined to RM2,610 per tonne from the RM2,650 per tonne yesterday.
RUBBER
THE Malaysian rubber market closed lower yesterday in quiet trading, dealers said.
Dealers said players stayed on the sidelines awaiting a drop in prices.
“The market undertone is still firm, supported by tight supply, as rubber production in major producing countries has been falling due to the continued dry weather,” a dealer said.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 3 sen lower at 1,034.0 sen per kg and latex-in-bulk slipped two sen to 733.0 sen per kg.
The unofficial closing price for tyre-grade SMR 20 and latex-in-bulk shed 1 sen each to 1,033.5 sen per kg and 733.5 sen per kg respectively.
TIN
THE tin price on the Kuala Lumpur Tin Market (KLTM) closed lower yesterday by US$100 (US$1.00 = RM3.34) to settle at US$17,500 per tonne on a technical correction, dealers said.
The dealers said there was only scattered buying after Tuesday record high of US$17,600, as the market participants were cautious.
The tin price on the London Metal Exchange (LME), however, rose by US$40 to US$17,600 per tonne. On the local front, bids totalled 45 tonnes against offers of 100 tonnes.
Yesterday's turnover declined to 61 tonnes from 75 tonnes on Tuesday, with the participation of Japanese, European and local traders.
The price differential between the KLTM and the LME narrowed to US$255 per tonne from the US$395 per tonne on Tuesday. - Agencies
Wednesday, March 24, 2010
Crude Palm Oil Ends Down;Exports Likely Down, Output Up
Crude palm oil futures on Malaysia’s derivatives exchange ended lower Wednesday on concerns over disappointing exports amid rising production, said trade participants.
The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR31 lower at MYR2,560 a metric ton after trading in the MYR2,549-MYR2,595 range.
Traders said they expect Malaysia’s March 1-25 exports to be flat on month at 1.1 million tons.
During the same period in February, cargo surveyor Intertek Agri Services estimated exports at 1.1 million tons. Another cargo surveyor, SGS (Malaysia) Bhd., also provided a similar estimate.
With exports not on the increase, there are fears that end-March stock levels will rise, especially as production is tipped to grow by 5%-10% in March, said a Singapore-based trader.
Such a scenario would weigh on CPO prices, prompting them to trade downwards to MYR2,500-MYR2,550 in the next few days, said some traders.
In recent days, CPO prices have see-sawed between MYR2,550 and MYR2,600.
The export data is expected to be released Thursday. If exports fall below 1.1 million tons for March 1-25, immediate support at MYR2,550 will likely be broken, said traders.
Lower crude oil and soyoil prices also weighed on CPO prices.
By the end of trade on the BMD, May soyoil on the electronic Chicago Board of Trade was down 21 points at 39.33 cents a pound.
May Brent crude oil on London’s ICE futures fell $1.34 to $79.36 a barrel.
In the cash market, palm olein for July/August/September traded at $795/ton, said an executive from a Singapore-based commodities brokerage.
Cash CPO for prompt shipment was offered MYR40 lower at MYR2,610/ton.
Open interest on the BMD was 77,953 lots Wednesday, down from 78,158 lots Tuesday. One lot is equivalent to 25 tons.
A total of 13,662 lots of CPO were traded versus 11,742 lots Tuesday.
(END) Dow Jones Newswires
March 24, 2010 06:47 ET (10:47 GMT)
The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR31 lower at MYR2,560 a metric ton after trading in the MYR2,549-MYR2,595 range.
Traders said they expect Malaysia’s March 1-25 exports to be flat on month at 1.1 million tons.
During the same period in February, cargo surveyor Intertek Agri Services estimated exports at 1.1 million tons. Another cargo surveyor, SGS (Malaysia) Bhd., also provided a similar estimate.
With exports not on the increase, there are fears that end-March stock levels will rise, especially as production is tipped to grow by 5%-10% in March, said a Singapore-based trader.
Such a scenario would weigh on CPO prices, prompting them to trade downwards to MYR2,500-MYR2,550 in the next few days, said some traders.
In recent days, CPO prices have see-sawed between MYR2,550 and MYR2,600.
The export data is expected to be released Thursday. If exports fall below 1.1 million tons for March 1-25, immediate support at MYR2,550 will likely be broken, said traders.
Lower crude oil and soyoil prices also weighed on CPO prices.
By the end of trade on the BMD, May soyoil on the electronic Chicago Board of Trade was down 21 points at 39.33 cents a pound.
May Brent crude oil on London’s ICE futures fell $1.34 to $79.36 a barrel.
In the cash market, palm olein for July/August/September traded at $795/ton, said an executive from a Singapore-based commodities brokerage.
Cash CPO for prompt shipment was offered MYR40 lower at MYR2,610/ton.
Open interest on the BMD was 77,953 lots Wednesday, down from 78,158 lots Tuesday. One lot is equivalent to 25 tons.
A total of 13,662 lots of CPO were traded versus 11,742 lots Tuesday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Apr 2010 2,612 2,644 Dn 32 2,642 2,605 May 2010 2,577 2,610 Dn 33 2,611 2,567 Jun 2010 2,560 2,591 Dn 31 2,595 2,549 Jul 2010 2,546 2,580 Dn 34 2,576 2,535-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277; fawziah.selamat@dowjones.com
(END) Dow Jones Newswires
March 24, 2010 06:47 ET (10:47 GMT)
CPO futures up in line with steadier soyaoil
CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher yesterday in line with steadier soyaoil prices, dealers said.
They said speculation of lower palm oil production for this month due to the dry weather also supported prices in trading higher.
"It's pretty much an uneventful day," said a trader.
"Crude is trading in a positive zone which prompted covering that pushed the market, but the follow-through buying is not there. There is no fresh news to push it a lot higher or lower," the trader said.
Players were looking for fresh leads from the export number for March 1-25, as well as watching for data on production, traders said.
"We are still keen to see if there is any pick-up (in production) for the second half of the month," another trader said.
At close, April 2010 rose RM9 to RM2,644 per tonne, May 2010 increased RM20 to RM2,610, June 2010 gained RM21 to RM2,591 and July 2010 added RM22 to RM2,580.
Turnover, however, declined to 11,742 lots from 12,691 lots on Monday and open interests eased to 78,158 contracts from 79,157 contracts previously.
On the physical market, April South increased to RM2,650 per tonne from RM2,630 per tonne.
RUBBER
RUBBER market closed mixed yesterday despite higher rubber prices on the Tokyo Commodity Exchange, dealers said.
They said the local market was relatively quiet as buyers stayed on the sidelines awaiting a drop in prices.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended half sen higher at 1,037.0 sen per kg while latex-in-bulk shed one sen to 735.0 sen per kg.
The unofficial closing price for tyre-grade SMR 20 fell 2 sen to 1,034.5 sen per kg and latex-in-bulk slipped half sen to 734.5 sen per kg.
TIN
THE Kuala Lumpur Tin Market (KLTM) surged to a seven-week high yesterday, boosted by strong demand in the local market, dealers said.
The price of the commodity rose US$20 (US$1.00 = RM3.34) to close at US$17,600 a tonne, the highest level, since it hit US$17,800 on Jan 29 this year.
On the LME meanwhile, the metal price declined US$90 to settle at US$17,560 per tonne overnight.
"The buying appetite on the local market increased despite the drop on the London Metal Exchange (LME)," a dealer said.
There was also strong demand from Japanese, European and local buyers, with the market traded in a firmer manner.
On the local front, turnover increased to 75 tonnes from the 60 tonnes recorded on Monday.
At the opening bell, bids stood at 80 tonnes with offers at 60 tonnes. The price differential between the KLTM and the LME widened to US$395 per tonne from the US$285 on Monday. - Agencies
They said speculation of lower palm oil production for this month due to the dry weather also supported prices in trading higher.
"It's pretty much an uneventful day," said a trader.
Players were looking for fresh leads from the export number for March 1-25, as well as watching for data on production, traders said.
"We are still keen to see if there is any pick-up (in production) for the second half of the month," another trader said.
At close, April 2010 rose RM9 to RM2,644 per tonne, May 2010 increased RM20 to RM2,610, June 2010 gained RM21 to RM2,591 and July 2010 added RM22 to RM2,580.
Turnover, however, declined to 11,742 lots from 12,691 lots on Monday and open interests eased to 78,158 contracts from 79,157 contracts previously.
On the physical market, April South increased to RM2,650 per tonne from RM2,630 per tonne.
RUBBER
RUBBER market closed mixed yesterday despite higher rubber prices on the Tokyo Commodity Exchange, dealers said.
They said the local market was relatively quiet as buyers stayed on the sidelines awaiting a drop in prices.
At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended half sen higher at 1,037.0 sen per kg while latex-in-bulk shed one sen to 735.0 sen per kg.
The unofficial closing price for tyre-grade SMR 20 fell 2 sen to 1,034.5 sen per kg and latex-in-bulk slipped half sen to 734.5 sen per kg.
TIN
THE Kuala Lumpur Tin Market (KLTM) surged to a seven-week high yesterday, boosted by strong demand in the local market, dealers said.
The price of the commodity rose US$20 (US$1.00 = RM3.34) to close at US$17,600 a tonne, the highest level, since it hit US$17,800 on Jan 29 this year.
On the LME meanwhile, the metal price declined US$90 to settle at US$17,560 per tonne overnight.
"The buying appetite on the local market increased despite the drop on the London Metal Exchange (LME)," a dealer said.
There was also strong demand from Japanese, European and local buyers, with the market traded in a firmer manner.
On the local front, turnover increased to 75 tonnes from the 60 tonnes recorded on Monday.
At the opening bell, bids stood at 80 tonnes with offers at 60 tonnes. The price differential between the KLTM and the LME widened to US$395 per tonne from the US$285 on Monday. - Agencies
Tuesday, March 23, 2010
CPO, rubber end mixed, tin unchanged
CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed mixed yesterday on lack of strong buying, dealers said.
The release of higher export figures for the first 20 days of March by cargo surveyor Intertek Testing Services (ITS) had provided buying interest in the morning session.
However, unfavourable palm oil export data released by cargo surveyor SGS in afternoon session capped the earlier gains.
According to ITS, palm oil exports for March 1-20 rose 3.4 per cent to 873,931 tonnes from 844,865 shipped in the same period last month.
SGS meanwhile reported that exports of palm oil for the same period fallen 2.4 per cent to 844,474 from 865,593 tonnes in February.
Meanwhile, Interband Group's Senior Palm Oil Trader said the CPO futures market was firm as investors were bullish on the prospects for the Malaysian economy.
"The current prices are still attractive," he said. April 2010 rose RM15 to RM2,635 and May 2010 added RM7 to RM2,590 but June and July 2010 fell RM7 each to RM2,570 and RM2,558 respectively.
Overall volume fell to 12,691 lots from 15,432 lots last Friday while open interest eased to 79,157 from 81,225 contracts previously. On the physical market, April South stood at RM2,630 .
RUBBER
PRICES on the Malaysian rubber market ended mixed yesterday on a lack of strong buying, dealers said.
However, they said that the market undertone was firm, due to supply concerns in major producing countries.
“The prolonged hot weather will increase stress on the trees and cause the production of less latex,” a dealer said.
At noon,the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 1 sen higher at 1,036.5 sen a kg while latex-in-bulk fell 2 sen to 736.0 sen.
The unofficial closing price for SMR 20 was unchanged at 1,036.5 sen per kg while latex-in-bulk slipped 1.5 sen to 735.0 sen a kg.
TIN
THE Kuala Lumpur Tin Market (KLTM) closed unchanged yesterday at US$17,580 (US$1.00 = RM3.34) per tonne, despite the downtrend performance on the London Metal Exchange (LME), dealers said.
The metal price on the LME fell by US$145 to US$17,650 per tonne.
On the local front, at the opening level of US$17,580 per tonne, bids accounted for 65 tonnes while offers were at 60 tonnes.
Turnover increased to 60 tonnes from 56 tonnes last Friday with interest from Japanese, European and local traders.
The price differential between the KLTM and the LME widened to a premium of US$285 per tonne from US$140 per tonne previously. - Bernama
The release of higher export figures for the first 20 days of March by cargo surveyor Intertek Testing Services (ITS) had provided buying interest in the morning session.
However, unfavourable palm oil export data released by cargo surveyor SGS in afternoon session capped the earlier gains.
SGS meanwhile reported that exports of palm oil for the same period fallen 2.4 per cent to 844,474 from 865,593 tonnes in February.
Meanwhile, Interband Group's Senior Palm Oil Trader said the CPO futures market was firm as investors were bullish on the prospects for the Malaysian economy.
"The current prices are still attractive," he said. April 2010 rose RM15 to RM2,635 and May 2010 added RM7 to RM2,590 but June and July 2010 fell RM7 each to RM2,570 and RM2,558 respectively.
Overall volume fell to 12,691 lots from 15,432 lots last Friday while open interest eased to 79,157 from 81,225 contracts previously. On the physical market, April South stood at RM2,630 .
RUBBER
PRICES on the Malaysian rubber market ended mixed yesterday on a lack of strong buying, dealers said.
However, they said that the market undertone was firm, due to supply concerns in major producing countries.
“The prolonged hot weather will increase stress on the trees and cause the production of less latex,” a dealer said.
At noon,the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 1 sen higher at 1,036.5 sen a kg while latex-in-bulk fell 2 sen to 736.0 sen.
The unofficial closing price for SMR 20 was unchanged at 1,036.5 sen per kg while latex-in-bulk slipped 1.5 sen to 735.0 sen a kg.
TIN
THE Kuala Lumpur Tin Market (KLTM) closed unchanged yesterday at US$17,580 (US$1.00 = RM3.34) per tonne, despite the downtrend performance on the London Metal Exchange (LME), dealers said.
The metal price on the LME fell by US$145 to US$17,650 per tonne.
On the local front, at the opening level of US$17,580 per tonne, bids accounted for 65 tonnes while offers were at 60 tonnes.
Turnover increased to 60 tonnes from 56 tonnes last Friday with interest from Japanese, European and local traders.
The price differential between the KLTM and the LME widened to a premium of US$285 per tonne from US$140 per tonne previously. - Bernama
Oil palm planters face rising cost
OIL palm plantation owners in Sabah face increasing cost of doing business due to the slow trunk road upgrade between major towns and labour shortage.
Many oil palm planters have long suffered from congestion and slow transport of oil to the ports for shipment as well as shortage of labour to harvest fruit bunches.
"The government should speed up upgrading of trunk roads here to handle heavy loads of produce. We now face congestion problems," said Kam Cheong Plantations Sdn Bhd director Cheong Sung Yan. He is also the Incorporated Society of Planters (ISP) Sabah's northeast branch chairman.
"Don't forget that Sabah produces about a third of Malaysia's palm oil exports. The trunk road is congested and the road system is bad," he told Business Times on the sidelines of a workshop organised by the Malaysian Palm Oil Council and ISP in Sandakan yesterday.
Cheong lamented that oil palm plantation owners in Sabah pay cess to the Malaysian Palm Oil Board, income and corporate tax to the Finance Ministry, workers' levy to the Home Ministry and 7.5 per cent sales tax to the Sabah government.
"We pay so much tax to the government, (but) what do we get in return? We hear announcements that hundreds of million ringgit had been allocated to build and upgrade roads here but ... until today, implementation remains to be seen," Cheong said.
Two months ago, the Rural and Regional Development Ministry had said that it will spend about RM2.1 billion to provide rural basic infrastructures in Sabah and Sarawak under the National Key Result Areas (NKRA) this year.
Its minister Datuk Seri Mohd Shafie Apdal had said the allocation also involved the completion of last year's projects to build new roads nd provide water and electricity supply. Of the total, about RM928 million would be allocated to Sabah.
For NKRA's rural road projects, Sabah was allocated RM134.9 million to complete 40 of last year's projects and another RM56.8 million to implement 36 new roads.
On labour shortage, Cheong said the government's frequent change in the method of foreign labour application is burdening oil palm planters.
"(Of course) if we can help it, we want to be on the safe side of the law. But to legalise foreign labour, we need to approach five or six government agencies and it costs us RM2,000 per worker. That works out to RM2 million to legalise 1,000 workers," he said.
While oil palm planters support the government policy to employ more locals and enhance mechanised harvesting on the estates, the reality is far from expectations.
Cheong said that young locals entering the labour market are just not interested in menial jobs like harvesting of oil palm fruits.
"This has been a long recurring problem that oil palm planters here face. We want to see the government eliminate red tape in the application for foreign labour because it is adding unnecessary cost to doing business," he said. - BUSINESS TIMES
Many oil palm planters have long suffered from congestion and slow transport of oil to the ports for shipment as well as shortage of labour to harvest fruit bunches.
"The government should speed up upgrading of trunk roads here to handle heavy loads of produce. We now face congestion problems," said Kam Cheong Plantations Sdn Bhd director Cheong Sung Yan. He is also the Incorporated Society of Planters (ISP) Sabah's northeast branch chairman.
"Don't forget that Sabah produces about a third of Malaysia's palm oil exports. The trunk road is congested and the road system is bad," he told Business Times on the sidelines of a workshop organised by the Malaysian Palm Oil Council and ISP in Sandakan yesterday.
"We pay so much tax to the government, (but) what do we get in return? We hear announcements that hundreds of million ringgit had been allocated to build and upgrade roads here but ... until today, implementation remains to be seen," Cheong said.
Two months ago, the Rural and Regional Development Ministry had said that it will spend about RM2.1 billion to provide rural basic infrastructures in Sabah and Sarawak under the National Key Result Areas (NKRA) this year.
Its minister Datuk Seri Mohd Shafie Apdal had said the allocation also involved the completion of last year's projects to build new roads nd provide water and electricity supply. Of the total, about RM928 million would be allocated to Sabah.
For NKRA's rural road projects, Sabah was allocated RM134.9 million to complete 40 of last year's projects and another RM56.8 million to implement 36 new roads.
On labour shortage, Cheong said the government's frequent change in the method of foreign labour application is burdening oil palm planters.
"(Of course) if we can help it, we want to be on the safe side of the law. But to legalise foreign labour, we need to approach five or six government agencies and it costs us RM2,000 per worker. That works out to RM2 million to legalise 1,000 workers," he said.
While oil palm planters support the government policy to employ more locals and enhance mechanised harvesting on the estates, the reality is far from expectations.
Cheong said that young locals entering the labour market are just not interested in menial jobs like harvesting of oil palm fruits.
"This has been a long recurring problem that oil palm planters here face. We want to see the government eliminate red tape in the application for foreign labour because it is adding unnecessary cost to doing business," he said. - BUSINESS TIMES
Monday, March 22, 2010
Crude Palm Oil Ends Down Amid Conflicting Export Data
Crude palm oil futures on Malaysia’s derivatives exchange ended mostly lower Monday in volatile trade spurred on by conflicting export estimates, said trade participants.
The benchmark June contract on the Bursa Malaysia Derivative exchange ended down MYR7 at MYR2,570 a metric ton after trading in a range of MYR2,554-MYR2,594/ton.
Conflicting estimates released by cargo surveyors SGS (Malaysia) Bhd. and Intertek Agri Services on Malaysia's March 1-20 palm oil exports prompted bulls and bears to battle it out in the market.
Over the weekend, Intertek estimated exports were up 3.4% on month at 873,931 tons, just a little over market expectations of 873,000 tons.
The news provided some support for CPO prices and allowed bulls to push the thin market trade into positive territory despite crude oil prices falling below the crucial $80 a barrel psychological barrier during Asian trading hours today.
However, estimates by SGS prompted the bears to come out in full force.
The surveyor's data showed exports during March 1-20 fell 2.4% on month to 844,474 tons.
Depending on which data participants preferred to follow, CPO prices began trading in a volatile manner, see-sawing between positive and negative territory.
"The bears won in the end, as there are fears that production is up, perhaps by 5%-10%, and this may push up end-March stock levels," said a Kuala Lumpur-based trader.
In the cash market, palm olein for July/August/September traded at $800/ton, said an executive from a Singapore-based commodities brokerage.
Cash CPO for prompt shipment was offered unchanged at MYR2,630/ton.
Open interest on the BMD was 79,157 lots Monday, down from 81,225 lots Friday. One lot is equivalent to 25 tons.
A total of 12,691 lots of CPO were traded versus 15,432 lots Friday.
(END) Dow Jones Newswires
March 22, 2010 06:52 ET (10:52 GMT)
The benchmark June contract on the Bursa Malaysia Derivative exchange ended down MYR7 at MYR2,570 a metric ton after trading in a range of MYR2,554-MYR2,594/ton.
Conflicting estimates released by cargo surveyors SGS (Malaysia) Bhd. and Intertek Agri Services on Malaysia's March 1-20 palm oil exports prompted bulls and bears to battle it out in the market.
Over the weekend, Intertek estimated exports were up 3.4% on month at 873,931 tons, just a little over market expectations of 873,000 tons.
The news provided some support for CPO prices and allowed bulls to push the thin market trade into positive territory despite crude oil prices falling below the crucial $80 a barrel psychological barrier during Asian trading hours today.
However, estimates by SGS prompted the bears to come out in full force.
The surveyor's data showed exports during March 1-20 fell 2.4% on month to 844,474 tons.
Depending on which data participants preferred to follow, CPO prices began trading in a volatile manner, see-sawing between positive and negative territory.
"The bears won in the end, as there are fears that production is up, perhaps by 5%-10%, and this may push up end-March stock levels," said a Kuala Lumpur-based trader.
In the cash market, palm olein for July/August/September traded at $800/ton, said an executive from a Singapore-based commodities brokerage.
Cash CPO for prompt shipment was offered unchanged at MYR2,630/ton.
Open interest on the BMD was 79,157 lots Monday, down from 81,225 lots Friday. One lot is equivalent to 25 tons.
A total of 12,691 lots of CPO were traded versus 15,432 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Apr 2010 2,635 2,620 Up 15 2,637 2,592 May 2010 2,590 2,583 Up 07 2,610 2,568 Jun 2010 2,570 2,577 Dn 07 2,594 2,554 Jul 2010 2,558 2,565 Dn 07 2,580 2,544-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277; fawziah.selamat@dowjones.com
(END) Dow Jones Newswires
March 22, 2010 06:52 ET (10:52 GMT)
CPO futures --Bear takes over driver's seat
This trade in places happened last week when the benchmark third month contract - now the June 2010 contract - smashed and crashed through on the downside the erstwhile RM2,630 a tonne short-term support level. The June 2010 contract plummeted to a low of RM2,526 before liquidation profit-taking and short-covering ahead of the weekend gave prices a last-minute lift. The contract settled last Friday at RM2,577, down RM72 or 2.72 per cent over the week.
Last week's total turnover of 53,678 contracts for the benchmarket contract was notably higher than the previous week's 39,041 contracts, reflecting the bulge in selling activity.
The sudden - and largely unexpected - sea change in investor sentiment has puzzled many small retail market players. Palm oil's fundamentals (hitherto considered bullish) do not appear to have changed much. Industry figures see the present heat wave crimping yields of palm fresh fruit bunches even as, based on the latest export estimates, the trend of exports is still up.
Export monitors Societe Generale de Surveillance and Intertek Agri Services' latest estimates put March 1-15 exports at a combined average of 654,000 tonnes, up 59,000 tonnes or 11.75 per cent from thatin first-half February.
External factors, however, are providing a discouraging ackdrop for the local market. Strength in the US dollar and weakness in US soya-bean oil futures, which also, technically, has gone into bear mode due to expectations for a South American bumper harvest for soybeans, are weighing on world edible oil markets overall.
Conclusion: Market players will this week look to the March 1-20 export estimates for leads.
But if the technicals are any guide this market, in the present bear phase, well fall to as low as RM2,400, the next major technical support level.
HOW TO USE THE CHARTS AND INDICATORS
THE BAR AND VOLUME CHART: This is the daily high, low and settlement prices of the most actively traded basis month of the crude palm oil futures contract. Basically, rising prices accompanied by rising volumes would indicate a bull market.
THE MOMENTUM INDEX: This line plots the short/medium-term direction of the market and may be interpreted as follows:
(a) The market is in an upward direction when the line closes above the neutral straight line and is in a downward direction when the reverse is the case.
(b) A loss in the momentum of the line (divergence) when prices are still heading up or down normally indicates that the market could expect a technical correction or a reversal in the near future.
n THE RELATIVE STRENGTH INDEX: This indicator is most useful when plotted in conjunction with a daily bar chart and may be interpreted as follows:
(a) Overbought and oversold positions are indicated when the index goes above or below the upper and lower dotted lines.
(b) Support and resistance often show up clearly before becoming apparent on the bar chart.
(c) Divergence between the index and price action on the chart is a very strong indication that a market turning point is imminent.
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
The writer welcomes comments and feedback. He can be reached at mavernwqmun@gmail.com
Sunday, March 21, 2010
Potential Bursa Stock
MERCURY INDUSTRIES BERHAD
Mercury Industries Berhad, an investment holding company, engages in the marketing of paints and related products in Malaysia. It also manufactures and sells putty, hardener, underseal, and paint. The company was incorporated in 1983 and is based in Kuala Lumpur, Malaysia.
www.mercury.com.my
Yinson Holdings Berhad, an investment holding company, primarily provides transport services. The company trades construction materials; rents out properties; and undertakes transport and haulage contracts, as well as provides insurance agency services. It offers various shipping and forwarding services, and marine transport services. The company was founded in 1983 and is based in Johor Bahru, Malaysia.www.yinson.com.my
Mercury Industries Berhad, an investment holding company, engages in the marketing of paints and related products in Malaysia. It also manufactures and sells putty, hardener, underseal, and paint. The company was incorporated in 1983 and is based in Kuala Lumpur, Malaysia.
www.mercury.com.my
Key developments for MERCURY INDUSTRIES BHD (MER)
Mercury Industries Bhd Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2009
Mercury Industries Bhd reported consolidated earnings results for the fourth quarter and full year ended December 31, 2009. For the quarter, the company reported profit before taxation of MYR 1,662,000, net profit of MYR 1,022,000 or 2.54 sen per share on revenues of MYR 12,465,000 compared to the profit before taxation of MYR 1,928,000, net profit of MYR 802,000 or 2.00 sen per share on revenues of MYR 11,539,000 for the same quarter year ago. For the year, the company reported profit before taxation of MYR 8,675,000, net profit of MYR 5,905,000 or 14.69 sen per share on revenues of MYR 48,796,000 compared to the profit before taxation of MYR 7,277,000, net profit of MYR 4,580,000 or 11.40 sen per share on revenues of MYR 47,713,000 for the previous year. Net cash from operating activities was MYR 3,417,000 compared to the net cash used in operating activities was MYR 1,843,000 for the previous year.
OPEN 0.66 | PREVIOUS CLOSE 0.62 | |
DAY HIGH 0.87 | DAY LOW 0.66 | |
52 WEEK HIGH 03/19/10 - 0.87 | 52 WEEK LOW 05/11/09 - 0.32 |
YINSON HOLDINGS BHD
Yinson Holdings Berhad, an investment holding company, primarily provides transport services. The company trades construction materials; rents out properties; and undertakes transport and haulage contracts, as well as provides insurance agency services. It offers various shipping and forwarding services, and marine transport services. The company was founded in 1983 and is based in Johor Bahru, Malaysia.
OPEN 0.74 | PREVIOUS CLOSE 0.76 | |
| DAY HIGH 0.82 | DAY LOW 0.74 | |
| 52 WEEK HIGH 02/5/10 - 0.82 | 52 WEEK LOW 03/31/09 - 0.45 |
Financial Statements for YINSON HOLDINGS BHD (YNS)
Year over year, Yinson Holdings Bhd has seen little change in their bottom line (from 13.0M to 12.8M) despite revenues that grew from 483.3M to 636.0M. A key factor has been an increase in the percentage of sales devoted to the cost of goods sold from 93.20% to 94.19%.
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