Positive soyaoil, crude oil boost CPO prices

CRUDE palm oil futures on Bursa Malaysia Derivatives ended higher as players took cue from the positive soyaoil and crude oil prices overnight, a dealer said.

A firm trend in oil and commodity prices prompted investors to go in for some buying across various sectors, he added.

Trading was thin however as soyaoil and crude oil markets in the region were closed yesterday for the Easter holidays, a dealer said.

"Support and resistance levels are still around RM2,550 to RM2,600," said another trader.

Traders are on the lookout for a slew of palm oil data due next week such as cargo surveyor data for Malaysia'a April 1-10 palm oil exports and the Malaysian Palm Oil Board's monthly production, exports and stocks data.

The April 2010 contract rose RM11 to RM2,605 per tonne, May 2010 increased RM16 to RM2,571 per tonne, June 2010 added RM16 to RM2,559 and July 2010 rose RM11 to RM2,546 per tonne.

Volume dropped to 7,134 lots from 22,873 lots on Thursday, while open interest inched up to 83,116 contracts from 77,494 contracts previously.

In the physical market, April South was unchanged at RM2,630 per tonne.

RUBBER

THE benchmark Tokyo rubber futures contract rose to a 19-month high yesterday, up for a second day in a row, helped by a weaker yen and a brighter outlook for demand.

The key Tokyo Commodity Exchange rubber contract for September delivery closed up 4.9 yen at 318.2 yen per kg from the previous day. It was up 4.3 per cent on the week.

The contract earlier rose as high as 318.5 yen per kg, the highest for any benchmark since early September 2008.

In the physical market, the offer price of benchmark Thai rubber grade hit a record high of US$3.6 (US$1.00 = RM3.25) per kg yesterday and was likely to rise further as supply was falling for seasonal reasons.

Japan’s crude rubber inventories totalled 7,222 tonnes as of March 20, down 10.7 per cent from 10 days earlier, data from the Rubber Trade Association of Japan showed yesterday.

Deliverable rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 15 per cent from one week earlier, the exchange said yesterday.

A Reuters poll showed on Thursday that strong demand as the global economy recovers and tight supply for seasonal reasons are expected to boost Tokyo rubber futures in April.

Meanwhile, the Malaysian Rubber Board did not issue any prices for SMR grades yesterday, as the market was closed for Good Friday.

The MRB’s official physical price on Thursday for tyre-grade SMR 20 was down by 2 sen to 1,057.5 sen a kg.

Meanwhile, latex-in-bulk declined 1.5 sen to 746.00 sen a kg.

The unofficial closing price for tyre-grade SMR 20 fell by 1.5 sen to 1,057.0 sen and latex-in-bulk went down by ½ sen to 746.00 sen

TIN

THE Kuala Lumpur Tin Market (KLTM) closed steadier yesterday following strong demand from both local and European traders, dealers said.

The price of the metal surged US$190 to US$18,490 per tonne while on the London Metal Exchange (LME), it remained unchanged at US$18,450 per tonne.

On the local front, turnover was reduced at 60 tonnes compared with Thursday's volume of 95 tonnes. At the opening level, bids totalled 60 tonnes while offers amounted to 45 tonnes.

The premium between the KLTM and LME widened to US$395 per tonne from US$205 per tonne on Thursday. - Bernama

PENNY STOCK ALERT

WAH SEONG CORP BHD 

 

Wah Seong Corporation Berhad provides various services and products primarily to the oil and gas industry. The company’s Oil and Gas division engages in the provision of pipe coating services; provision of corrosion engineering, cathodic protection, inspection, corrosion testing, and failure analysis services; and manufacture, supply, and installation of sacrificial anodes. It also involves in the design and installation of equipment for the handling and coating of steel pipe; manufacture of spiral-welded steel and general structural pipes; fabrication and rental of gas compressors and process equipment; and design, installation, and commissioning of special tanks, pressure vessels, and piping. In addition, this division engages in the engineering design and fabrication of process equipment for the oil and gas industry, power stations, and water treatment plants; rental and maintenance of oil and gas process plants and equipments; and design, engineering, and construction of boiler and energy systems. Further, it provides offshore filtration systems, equipment, and technical services; non-destructive testing and other specialized integrated inspection services; drilling supplies and services; rock roller bits; hose, fittings, and other equipment; and installation, assembly, certification, and testing services. The company’s Industrial Services division provides oil palm processing equipment, spare parts, and equipment servicing for the agro based industry; industrial blowers and spare parts; and spiral welded steel pipes and fittings for water transmission and infrastructure. This division also engages in the manufacture and distribution of various building materials; installation services of metal roofing; provision of specialized processing equipment; and sale and service of turbines and equipment. It operates primarily in the Asia Pacific, the Middle East, Africa, and the Americas. The company was founded in 1994 and is headquartered in Kuala Lumpur, Malaysia.

WASEONG-CA

PENNY STOCK ALERT

INNOPRISE PLANTATIONS BHD 

 

Innoprise Plantations Berhad, an investment holding company, operates as a log extraction contractor in Malaysia. The company offers log extraction services; and develops oil palm plantations, as well as sells fruit bunches produced from oil palm plantations. It develops oil palm plantations on approximately 22,763 hectares of forest reserve land located in Sabah. The company was formerly known as Sinora Industries Berhad and changed its name to Innoprise Plantations Berhad in November 2009. Innoprise Plantations Berhad is based in Kota Kinabalu, Malaysia.

DJ Asian Crude Palm Oil Ends Up In Light Trade; Short Covering

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended higher Friday as investors covered shorts following a recovery in overnight soyoil and crude oil futures, but palm oil's diminishing discount to soyoil and a stronger ringgit capped gains, trade participants said.

At the end of trade on the Bursa Malaysia Derivatives exchange, only 7,175 lots of CPO were traded, less than a third of the 22,873 lots traded Thursday.

The benchmark June contract on the BMD ended MYR16 higher at MYR2,559 a metric ton after trading in a narrow MYR2,550-MYR2,569/ton range during the day.

Trading was subdued as most markets in the region was closed for a holiday.

External cues such as a rise in palm oil futures on the Dalian Commodity Exchange also boosted CPO prices.

"Based on BMD CPO trade in the past few trading sessions, prices seem to have formed a good support based around the MYR2,530 level, and could climb higher if favorable news for March CPO output and inventories surface," said a senior analyst from a Kuala Lumpur-based brokerage.

"The CPO bulls may want to push prices above MYR2,570/ton in the next trading session," he said.

But many among trade participants are still worried about the price premium erosion between soyoil and crude palm oil.

Palm olein's discount to soyoil has narrowed to as little as $10/ton from $100/ton in December, and may prompt buyers to switch to soyoil.

Also, the expected rise in Malaysia's palm oil output in March while exports remain less-than-spectacular may cap gains, said a Kuala Lumpur-based senior trading executive.

He added that Malaysia's March palm oil output is tipped to increase by 7%-11% on month.

"Output at our palm estates have shown single-digit increase (in March)," said Lee Oi Hian, chief executive at Malaysia-based listed plantation company Kuala Lumpur Kepong Bhd. (2445.KU).

In the cash market, palm olein for May/June shipment offered $2.50 lower at $812.50/ton.

Cash CPO for prompt delivery was offered unchanged at MYR2,600/ton.

Open interest on the BMD was 83,116 lots, up from 77,494 lots Thursday. One lot is equivalent to 25 tons.


Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change    High    Low 
Apr 2010   2,600    2,594      Up 06     2,607   2,593 
May 2010   2,571    2,555      Up 16     2,580   2,564 
Jun 2010   2,559    2,543      Up 16     2,569   2,550 
Jul 2010   2,546    2,535      Up 11     2,558   2,539 

-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com

DJ MARKET TALK: BMD CPO Futures Up Midday In Sluggish Trade

[Dow Jones] BMD CPO futures up midday in sluggish trade as other markets closed for Good Friday holidays. Marginal rise in palm oil on Dalian Commodity Change gives some support to BMD, Kuala Lumpur-based broker says. June contract likely to ease on profit-taking during afternoon trade as prices weren't able to breach MYR2,570/ton, Malaysia-based exporter says. Benchmark BMD June CPO futures trading MYR12 higher midday at MYR2,555/ton, off intraday high of MYR2,569/ton.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: CBOT Soyoil Positive For CPO Futures

[Dow Jones] Minor support likely today from soyoil for BMD CPO futures, traders say. Soyoil traded higher on CBOT, finding support from Nymex crude; Gains may spill over to CPO today, Malaysia-based broker says. May soyoil finished 67 points, or 1.7%, higher on CBOT at 38.98 cents/pound.


(shie-lynn.lim@dowjones.com)


Call us in Kuala Lumpur : +(603) 2026 1233;

DJ Asian Crude Palm Oil Ends Down On Narrowing CPO-Soyoil Gap

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended lower Thursday as investors took cues from the diminishing differential between soyoil and palm olein prices to take profit, said trade participants.

The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR13 lower at MYR2,543 a metric ton after trading in a MYR2,532-MYR2,549/ton range.

"Offer prices for palm olein are almost at par with crude soyoil...That places pressure on CPO prices even though crude oil rose toward $85 (in Asian trade)," said a trading executive with a Kuala Lumpur-based brokerage.

May light, sweet crude oil on the New York Mercantile Exchange was trading up 69 cents at $84.45 a barrel at 1009 GMT.

"It's difficult to get prices rallying even as palm inventories may fall in the coming months, as palm's discount to soyoil is very narrow now," said a Malaysia-based exporter.

He said CPO prices are likely to remain rangebound in the next trading session as some trading firms in the region will be closed Friday for the Easter holidays.

Soyoil's premium over palm is now around $7-$10/ton compared with more than $100/ton a few months ago, said trade participants. And that may narrow further, with soyoil to even trade at a discount to palm oil, which may prompt buyers to switch to the former. Both palm and soyoil compete for similar export destinations

Crude soyoil was last offered at $805/ton, free-on-board Argentine and Brazilian ports, while refined, bleached and deodorized palm olein was offered at $812.50/ton, FOB Malaysian ports, said a Singapore-based broker.

Industry analyst James Fry said the palm-soy price reversal may limit the rise in palm oil prices, even with palm inventories expected to show a seasonal decline in the next few months.

Palm inventories fell 11% on month to 1.79 million tons in February, while output was 13% lower on month at 1.16 million tons, according to data from the Malaysian Palm Oil Board.

In the cash market, palm olein for May shipment was traded at $802.50/ton, July/August/September at $790 and $792.50/ton and October/November/December at $780/ton, FOB Malaysian ports.

July/August/September CPO was traded at $762.50/ton, FOB Indonesian ports, said another  Singapore-based broker.

Cash CPO for prompt delivery was offered MYR30 lower at MYR2,600/ton.

Open interest on the BMD was 77,494 lots, down from 78,175 lots Wednesday.
One lot is equivalent to 25 tons.

A total of 22,873 lots of CPO were traded versus 14,488 lots Wednesday.


Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change    High    Low 
Apr 2010   2,594    2,628      Down 34   2,605   2,584 
May 2010   2,555    2,565      Down 10   2,568   2,553 
Jun 2010   2,543    2,556      Down 13   2,549   2,532 
Jul 2010   2,535    2,536      Down 01   2,535   2,515 
 

-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com

DJ CPO Prices May Rise Slightly Over Next 6 Months -Analyst Fry

BANGI, MALAYSIA (Dow Jones)--Crude palm oil prices may rise marginally over the next six months from current levels as tight palm oil inventories can help extend gains in prices, industry analyst James Fry at LMC International said Thursday.

"Palm oil prices will only go up slightly...the weakness in soyoil prices will limit gains (in CPO prices)," Fry told Dow Jones Newswires on the sidelines of an industry event.

Palm oil usually trades at a discount of more than $100/ton to soyoil.

However, the weakness in soyoil prices, due to a record soybean harvest from South America, has narrowed the gap to around $10/ton, with refined, bleached palm olein now offered around $812/ton, almost at par with crude soyoil, free on board Argentina and Brazil that is offered at $805/ton, trade participants said.

Palm oil may lose market share to soyoil as the narrowing discount may prompt buyers to shift demand to other vegetable oils, including rival soyoil.



-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com

DJ MARKET TALK: BMD CPO Down; Off Lows On Stronger Soyoil, Crude

[Dow Jones] BMD CPO futures down but off lows as soyoil, crude oil futures trade in positive territory, say traders. Benchmark June CPO contract down MYR10 at MYR2,546/ton, off intraday low of MYR2,532. May soyoil in after-hours trade up 31 points at 38.62 cents/pound; May Brent crude up $0.58 at $83.28/bbl. Trade thin, range-bound on lack of fresh local cues; positive external cues providing some support, says a Kuala Lumpur-based trader.

(fawziah.selamat@dowjones.com)


Call us in Jakarta: 62 21 3983 1277

DJ MARKET TALK: BMD CPO Down On Long Liquidation; May Recover

[Dow Jones] BMD CPO futures down on long liquidation; weak crude oil weighs,  say traders. Benchmark June CPO contract down MYR20 at MYR2,536/ton. Midday, May Brent crude on London's ICE futures down $0.30 at $82.40/bbl. "Sentiment is slightly bearish based on weak fundamentals of rising production and weakening exports, but this is something that is already widely known in the market," says a Kuala Lumpur-based trader. Adds prices may head toward positive territory in afternoon trade as participants square off positions ahead of long weekend. Support seen at MYR2,520, resistance at MYR2,550.

(fawziah.selamat@dowjones.com)  
 
Call us in Jakarta: 62 21 3983 1277 

DJ Argentina Soyoil Producers 'Worried' About China Import Threat

BUENOS AIRES (Dow Jones)--Possible moves by China to block Argentine soyoil imports are a "worry," Argentina's edible oil industry association, Ciara, said Wednesday.

In a statement, the chamber cited press reports Wednesday which suggested China was planning to raise quality standards on soyoil imports from April 1, which would effectively shut off imports from Argentina, currently the largest provider of that product to the Asian giant. "That would mean a pseudo-tariff pubishment just for soyoil from Argentina," the chamber said.

Crude soyoil is the second-most-plentiful product traded between the two countries, it said. The chamber said that, according to Chinese customs data, the Asian giant imported 1.83 million tons of soyoil, or 76% of its total soyoil imports, for a total of $1.41 billion, compared with 1.72 million tons worth $2.21 billion in 2008.

Argentina sells soyoil based on world quality standards and international commercial contracts, the chamber said, adding that in January 2005, China signed an agreement in which it stated that the norms wouldn't affect soyoil purchases.

Soyoil isn't consumed directly by humans and has to be refined before it is consumed, the chamber said, adding that Argentine processing units meet world standards.

Officials from Argentina's agricultural health service, known as Senasa, are traveling to China this  week, Ciara said.

-By Matthew Cowley, Dow Jones Newswires; +54 11 4103 6740;
matthew.cowley@dowjones.com 

DJ Asian Crude Palm Oil Ends Little Changed; Soyoil, Crude Support

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended little changed Wednesday, supported by stronger soyoil and crude oil futures, said trade participants.

The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR6 higher at MYR2,551 a metric ton after moving many times between positive and negative territory.

Soyoil futures during Asian trading hours rose as much as 38 points to 39.05 cents a pound, giving a boost to CPO prices, which rose to an intraday high of MYR2,561/ton.

Many trade participants also said market rumors of China curbing soyoil imports through tighter quality standard controls supported the rise in BMD CPO futures.

The Chinese government may require all imported soyoil to have a maximum solvent residue level of 100 parts a million and that cargoes exceeding the level not be allowed to be unloaded at ports.

May soyoil on the Chicago Board of Trade was trading 25 points higher at 38.92 cents/pound by the end of trade on the BMD.

Light, sweet crude oil for May delivery on the New York Mercantile Exchange was trading 52 cents higher at $82.89 a barrel on Globex at 1004 GMT.

The rise in Malaysia's palm oil exports gave little support to BMD, as "the figures are within expectations and have been factored into yesterday's gains," said a Kuala Lumpur-based trading executive.

Both cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. put exports at 1.35 million tons, up 7.7%-12% on month.

Palm oil exports were higher due to a rise in sales to China, India, Pakistan and the U.S., but the "numbers aren't impressive due to a decline in  European demand for the commodity, while palm's narrowing discount to soyoil may spur buyers to opt for rival soyoil," said a Malaysia-based exporter.

Shipments to Europe fell 33% on month to 157,793 tons, according to data from SGS, while Intertek estimated exports to Europe at 204,621 tons, down 12% on month.

"Market sentiment is a tad cautious today, moving in a narrow price range ahead of the U.S. Department of Agriculture's report to be released later tonight. The other prevailing factor that kept prices in a narrow range is the extent of a rise in cargoes from Indonesia," said an analyst in Singapore.

Malaysia's palm oil imports from Indonesia may rise to around 70,000-80,000 tons in March as Indonesian trading and refining companies may have rushed to ship as much oil to avoid a higher export tax from April, said shipping executives and analysts.

Higher palm oil imports may lead to higher palm inventories and may weigh on palm oil prices.

In the cash market, palm olein for April shipment was traded at $810/ton, said a Singapore-based broker, adding the bid-offer gap was around $10/ton.

Cash CPO for prompt delivery was offered MYR30 higher at MYR2,630/ton.

Open interest  on the BMD was 78,175 lots, up from 78,081 lots Tuesday.

One lot is equivalent to 25 tons. A total of 14,488 lots of CPO were traded versus 19,558 lots Tuesday.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT: 
 
Month      Close    Previous   Change    High    Low 
Apr 2010   2,628    2,591      Up 37     2,628   2,585 
May 2010   2,570    2,563      Up 07     2,581   2,555 
Jun 2010   2,551    2,545      Up 06     2,561   2,529 
Jul 2010   2,536    2,515      Up 21     2,542   2,513 
 
 
  -By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com 
 

DJ MARKET TALK: BMD CPO Futures Higher On Short Covering, Crude

[Dow Jones] BMD CPO futures tad higher, back in positive territory on short  covering, tracking gains in Chinese commodities, higher crude oil prices, traders say. Prices likely to trade in MYR2,540-MYR2,560 range rest of day, traders say. Malaysia's March palm oil exports within expectations, mostly factored into prices yesterday, traders say. Cargo surveyor SGS put March palm exports up 7.7% on month at 1.35 million tons, same level Intertek estimated earlier today. Benchmark BMD June CPO futures trading MYR6  higher at MYR2,551/ton. Nymex May crude oil trading 19 cents higher  at $82.56/bbl on Globex.

(shie-lynn.lim@dowjones.com) 

Call us in Kuala Lumpur : +(603) 2026 1233; 

DJ China Soybean Futures Settle Up; USDA Report In Focus

BEIJING (Dow Jones)--China's soybean futures traded on the Dalian Commodity Exchange settled higher Wednesday, with traders being cautious ahead of a possible favorable U.S. Department of Agriculture  report to be released tonight. The benchmark September 2010 soybean contract settled CNY19, or 0.5%, higher at CNY3,902 a metric ton.

The contract opened higher along with the gains on Chicago Board of  Trade overnight but failed to get more upward momentum despite market  rumors of China curbing soyoil imports through tighter quality  standard controls.

The market was abuzz with talk that the government  may require all imported soyoil to have a maximum solvent residue level of 100 parts per million, and that cargoes exceeding the level wouldn't be allowed to be unloaded at the ports. But as the market has digested the rumor yesterday, and no formal government document  was released, the focus remained on USDA's planting area report, Galaxy Futures said in its note.

Trading volume of all soybean contracts rose to 336,362 lots from 216,394 lots Tuesday. Open interest rose 6,318 lots to 342,256 lots Wednesday. Corn futures settled lower, while soyoil, soymeal and palm oil futures all  settled higher.

Following are Wednesday's settlement prices in yuan a ton for benchmark contracts and volume for all contracts in lots (one lot is equivalent to 10 tons):

Product  Contract  Settlement Price  Change     Volume 
Soybean  Sep 2010      3,902        Up   19    336,362 
Corn     Sep 2010      1,931      Down    4    106,824 
Soymeal  Sep 2010      2,851        Up    2    802,224 
Palm Oil Sep 2010      6,880        Up   12    368,058 
Soyoil   Sep 2010      7,604        Up   44  1,035,316 
 
 
  -Zheng Xiaolu contributed to this article; Dow Jones Newswires; 8610
8400-7715; tracy.zheng@dowjones.com 

DJ MARKET TALK: Malaysia Palm Oil Exports Up On China,India,Pakistan,US

[Dow Jones] Malaysia's palm oil exports higher on rise in sales to India, China, US, Pakistan, data from cargo surveyors show. Both Intertek and SGS estimate exports in March around 1.35 million tons. SGS estimates March palm oil exports to India rose 29% on month to 135,496 tons, with exports to Pakistan up 12.5% at 142,401 tons.  Intertek estimates exports to China 370,929 tons vs 335,935 tons,  to Americas 162,260 tons vs 94,004 tons. But shipments to Europe lower, declining 33% to 157,793 tons vs 236,684 tons as buyers there switched  to soyoil as the commodity now commanding a smaller premium over palm oil, says broker in Kuala Lumpur. Benchmark BMD June CPO futures trading  MYR5 lower at MYR2,540/ton.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233; 

DJ MARKET TALK: India Soybean Futures Steady; Outlook Weak

0751 GMT [Dow Jones] India April NCDEX soybean futures little changed at INR2,060/100 kgs; off intraday high of INR2,073 on news that Vietnam rejects 12,000 metric tons cargo of Indian soymeal citing low quality; soyoil down 0.5% at INR451.40/10 kgs. "It may further damp sentiment as export demand for soymeal is already low," says Indore-based trader; adds that high soybean stocks to also weigh in near-term. India February soymeal exports down 42.6% on year at 218,748 metric tons. Trader expects soybean in INR2,040-INR2,080 range, soyoil in INR448-INR454 band.

(ravi.bhushan@dowjones.com)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

DJ Malaysia March Palm Oil Exports 1.35 Mln Tons, +7.7% On Month -SGS

KUALA LUMPUR (Dow Jones)--Malaysia's March palm oil rose 7.7% compared with February to 1.35 million metric tons, cargo surveyor SGS (Malaysia) Bhd. said Wednesday.

The figure is within market expectations of a rise in shipments to around 1.35 million tons.

SGS estimated exports at 1.25 million tons in February. An estimate by another surveyor, Intertek Agri Services, put March exports at 1.35 million tons.

The following are the major items in the SGS estimate:
(All figures in metric tons)

                                   March           February
RBD Palm Olein         606,547        507,243
RBD Palm Oil            141,553         115,062
RBD Palm Stearin      122,920         158,770
Crude Palm Oil          219,591         271,628
Total*                        1,345,124     1,249,390

Major importers of Malaysian palm oil:

European Union          157,793        236,684
China                          371,711        340,315
U.S.                            110,072        84,029
India                           135,496        105,025
Pakistan                     142,401         126,570

*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 Malaysia March Palm Oil Exports 1.35 Mln Tons, Up 12% -Intertek

KUALA LUMPUR (Dow Jones)--Malaysia's palm oil exports rose 12% on month to 1.35 million metric tons in March, cargo surveyor Intertek Agri Services said Wednesday.

China was the biggest buyer of Malaysia's palm oil products, buying 370,929 tons. The Indian subcontinent bought 298,357 tons and the European Union 204,621 tons.

Intertek's estimate was in line with market expectations of a rise in shipments to around 1.35 million tons.

The cargo surveyor estimated exports at 1.21 million tons in February.

Another surveyor, SGS (Malaysia) Bhd., is expected to issue its estimate for March exports later Wednesday.

-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com

CPO futures close mostly higher

CRUDE palm oil futures on Bursa Malaysia Derivatives rebounded to close mostly higher yesterday prompted by stronger crude oil prices.

Dealers said the market was technically oversold ahead of the release of a prospective planting report on today by the US Department of Agriculture.

The market was also awaiting March's palm oil export data to be released by cargo surveyors Intertek Testing Services and Societe Generale de Surveillance for fresh directions.
"The market went down over the last few days, so it is bouncing back to support levels - around RM2,500," a trader with foreign brokerage in Kuala Lumpur said.

Stronger crude capped losses in some vegetable oil markets.

April 2010 added RM2 to RM2,591 per tonne, May 2010 declined RM11 to RM2,542 a tonne, June 2010 rose RM25 to RM2,545 and July 2010 increased RM5 to RM2,515 per tonne.

Overall, volume increased to 19,557 lots, from 15,623 lots on Monday, while open interest declined to 77,840 contracts from 79,209 contracts previously.

On the physical market, April South added RM10 to RM2,600 a tonne.

RUBEBR

THE Malaysian rubber market closed firmer yesterday in tandem with other regional markets, dealers said.

They said the market received a boost from the strong sentiment in Indonesia and Thailand. The Tokyo rubber futures contracts, however, fell on profit-taking.

At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 6 sen higher at 1,059.5 sen per kg while latex-in-bulk gained 4.5 sen to 748 sen per kg.

The unofficial closing price for tyre-grade SMR 20 increased by 1.5 sen to 1,059.00 sen per kg and latex-in-bulk increased 1sen to 748 sen per kg. — Bernama

TIN

THE Kuala Lumpur Tin Market (KLTM) increased by US$280 (US$1.00 = RM3.34) to close at US$17,880 per tonne yesterday on higher London Metal Exchange (LME) prices and good overseas demand, dealers said.

Overnight gains in the tin price on the LME further boost buying interest in the local market.

The tin price on the LME, which normally influences global prices, surged by US$375 to settle at US$18,050 per tonne.

On the KLTM, turnover was higher at 90 tonnes from the 51 tonnes at Monday closing with the participation of Japanese, European and local traders.

At the opening bell, buyers bid for 180 tonnes while sellers offered 56 tonnes.

The price differential between the KLTM and the LME narrowed to US$185 per tonne from Monday US$280 per tonne. - Agensies

DJ Brazil Soy Trade Timid On Prices, Upcoming USDA Report

SAO PAULO (Dow Jones)--Brazil's soy trade tapered off Tuesday as international soybean prices and the exchange rate failed to inspire selling.

"Buyers such as crushers or exporters struggled to buy beans as sellers refused to sell on Tuesday," said a chief trader at a major U.S. exporter.

The trader said slightly higher gains on the Chicago Board of Trade were canceled out by the exchange rate between the dollar and the Brazilian real on Tuesday.

Benchmark May soybean futures on CBOT ended 6.5 cents higher at $9.74 a bushel on Tuesday. Meanwhile, the dollar was at 1.79 Brazilian reals on Tuesday compared with BRL1.80 on Monday.

The trader said at Paranagua port, Brazil's main grain port, buyers were offering a premium of 15-16 cents over the CBOT May contract, while sellers wanted 20 cents. Only small volumes of physical soy were sold, he said.

Andre Pessoa, director of consultancy Agroconsult, said soy trade in Mato Grosso state, the top soy producer, has edged forward to 63% of the 2009-10 soy crop sold as of March. Sales in Parana, Brazil's No. 2 soy producing state, were at 19% sold as of March.

Most Brazilian farmers can still break even, but they are kicking themselves for not selling more earlier in the crop season, Pessoa said. Prices and the exchange rate were more favorable in previous months and could be pressured further by Brazil's big crop, which is seen at 68 million tons, he said.

For instance, in March the average profit margin in Parana was BRL500 per hectare, down from BRL650 per hectare in February, BRL688 per hectare in January and BRL732 in December, he said.

David Goncalves, a soy analyst at FC Stone in Campinas, said most eyes are on the U.S. Department of Agriculture's planting-intentions and quarterly grain stocks reports, scheduled to be released Wednesday.

Steve Cachia, an analyst at Cerealpar in Parana, said prices were around BRL38.30 and BRL38.40 per 60-kilogram bag on Tuesday at Paranagua.

Many sellers are speculating the USDA report might lead to a small increase in prices, he said.

Brazil is the world's No. 2 soy producer after the U.S.


- By Tony Danby, Dow Jones Newswires; 55-11-2847-4523;
Anthony.Danby@dowjones.com

DJ UPDATE: Brazil's Soy Crop Seen At 68 Mln Tons -Agroconsult

(Adds further details of key states and yields from press conference)


SAO PAULO (Dow Jones)--Brazil will harvest 68 million metric tons of soybeans from the 2009-10 crop, agronomists from consulting firm Agroconsult said Tuesday.

The number is based on a 12-state crop tour that Agroconsult finished this month.

The official estimates, made by the National Commodities Supply Corp., or Conab, this month put the crop at 67.5 million tons, up 18% from last year.

The crop is expected to be a record compared to the previous high mark in 2007-08, when Brazilian farmers harvested 60 million tons of soybeans.

Brazil's record 2009-10 soybean crop is up from the consultant's earlier estimate of 65 million tons in January, Andre Pessoa, director of consultancy Agroconsult, told reporters at a press conference in Sao Paulo.

Mato Grosso, Brazil's No. 1 soy-producing state, should produce 19.12 million tons of soy this season against 17.7 million tons last season, he said.

Parana state, the No. 2 soy producer, should produce a record 14.14 million tons this year compared to 9.4 million tons last year, when drought hampered the crop.

Rio Grande do Sul state, the third-largest producer, should also see 9.9 million tons this season versus 7.9 million tons from the last crop season, Pessoa said.

Brazil's yield for soybeans averaged at 48.8 60-kilogram bags per hectare for the 2009-10 crop compared to 43.6 kilograms per hectare last season, he said.

Brazil is currently harvesting soybeans and is the world's No. 2 producer behind the U.S.


-By Tony Danby, Dow Jones Newswires; 55-11-2847-4523;
anthony.danby@dowjones.com

DJ MARKET TALK: India Soyoil Futures End Up 0.5% On Firm Palm

1139 GMT [Dow Jones] India April NCDEX soyoil futures provisionally settle up 0.5% at INR454.30/10 kg, tracking 1% rise in BMD palm oil; soybean ends up 0.4% at INR2,061.50/100 kg. "But, high rapeseed arrivals will weigh on prices in near term," says Indore-based trader; India's rapeseed output for crop year through September likely at 6.32 million metric tons versus 6.20 million tons year earlier. Trader tips soybean in INR2,040-INR2,080 range, soyoil in INR451-INR458 band tomorrow.
 

(ravi.bhushan@dowjones.com)  
 
Contact us in Singapore. 65 64154 140; 
MarketTalk@dowjones.com 
 
 

DJ Asian Crude Palm Oil Ends Up On Short Covering, Exports

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange rose Tuesday, erasing earlier losses on short covering and speculative buying spurred by a likely rise in palm oil exports in March, trade participants said.

The benchmark June contract on the Bursa Malaysia Derivatives exchange ended MYR25 higher at MYR2,545 a metric ton after trading in MYR2,501-MYR2,548/ton range.

Prices rebounded when the afternoon trading session resumed, as the rise in crude oil prices cushioned the fall in CPO futures, a Singapore-based exporter said.

Light, sweet crude oil for May delivery rose as much as 57 cents to $82.74 a barrel during Asian trading  hours. The May contract was unchanged at $82.17/bbl at 1002 GMT.

Malaysia's March palm oil exports will likely rise by 11%-12% to around 1.35 million tons, said a Kuala Lumpur-based trading executive.

For February, cargo surveyor Intertek Agri Services estimated exports at 1.21 million tons while SGS  (Malaysia) Bhd. put shipments at 1.25 million tons.

"While this is positive for the market, participants are still maintaining a cautious stance on an expected rise in palm oil imports from Indonesia (to avoid higher export tax), which may lead to higher palm oil inventories,"  said a Malaysia-based analyst.

In April, Indonesia will raise its tax on CPO exports to 4.5% from 3% now. This may prompt a surge in palm  oil shipments to Malaysia as suppliers rush to ship as much oil to avoid the higher export tax.

"Any major movement in CPO prices hinges on tomorrow's stocks and acreage report from the US  Department of Agriculture. While the report is tipped to be bullish, any recovery in CPO prices will be short-lived as export demand isn't rising fast enough while the strengthening ringgit will limit upside," said S. Paramalingam, executive director at brokerage firm Pelindung Bestari Sdn. Bhd.

Analysts have projected that the area will total 88.94 million acres in Wednesday's planting intentions report from the USDA.

While the estimates are a tad up from last year's total of 86.5 million acres, the figure is slightly lower than US government's earlier forecast of 89 million acres.

In the cash market, palm olein July/August/September was traded at $795/ton, said an executive at  Singapore-based commodities brokerage.

Cash CPO for prompt delivery was offered MYR10 higher at MYR2,600/ton.

Open interest on the BMD was 78,081 lots, down from 79,450 lots Monday. One lot is equivalent to 25 tons.

A total of 19,558 lots of CPO were traded versus 15,643 lots Friday.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change    High    Low 
Apr 2010   2,591    2,589      Up 02     2,591   2,535 
May 2010   2,563    2,553      Up 10     2,570   2,527 
Jun 2010   2,545    2,520      Up 25     2,548   2,501 
Jul 2010   2,515    2,510      Up 05     2,526   2,486 
 

-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com

DJ MARKET TALK: CBOT Soyoil Rise May Support CPO Futures

[Dow Jones] Higher soyoil on CBOT may support BMD CPO futures, traders say.  "Ongoing concern over the Argentine port strike lifted soy prices, which is positive for CPO," says analyst in Singapore. May CBOT soyoil finished 32 points higher at 39.27 cents/pound overnight; down 4 points on e-CBOT.

(shie-lynn.lim@dowjones.com) Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: Rain May Help Malaysia, Indonesia Oil Palms

[Dow Jones] Isolated rains in Malaysia, Indonesia should bring respite for oil palms after recent dry spell, aiding palm oil production. Meteorologix says isolated rains likely next few days in Malaysia; tips rainfall of 3-25 mm today in Malaysia, 3-32 mm in Indonesia. Malaysia last week receives more than 2
inches of rains, improving soil moisture for oil palms, Chicago-based meteorologist Mike Tannura at T-Storm says; adds east Malaysia may receive more rains this week. 

(shie-lynn.lim@dowjones.com) Call us in Kuala Lumpur : +(603) 2026 1233;

DJ China Soybean Futures Settle Up, Following Gains On CBOT

BEIJING (Dow Jones)--Soybean futures traded on the Dalian Commodity Exchange settled higher Monday, following gains Friday on the Chicago Board of Trade.

The benchmark September 2010 soybean contract settled up CNY22, or 0.6%, at CNY3,867 a metric ton.

The dollar's weakness Friday and a strike by port workers in Argentina, which will slow soybean exports, both helped to support futures prices, analysts said.

Relatively strong performances Monday in other markets, such as metals, also helped to support sentiment towards agricultural products.

However, trading remained cautious in a tight CNY23/ton range ahead of a U.S. Department of Agriculture report to be issued Wednesday, which will give initial forecasts for acreage of major crops.

Cash soybean prices were slightly lower in very light trading, providing little trading guidance for futures.

Trading volume of all soybean contracts declined to 119,370 lots from 152,900 lots Friday.

Open interest fell 4,270 lots to 341,862 lots Monday.  Futures for corn, soyoil, soymeal and palm oil all settled higher.

Following are Monday's settlement prices in yuan a metric ton for benchmark contracts and volume for all contracts in lots (One lot is equivalent to 10 tons):

Contract  Settlement Price  Change     Volume 
Soybean  Sep 2010      3,867        Up   22    119,370 
Corn     Sep 2010      1,930        Up   15    113,450 
Soymeal  Sep 2010      2,828        Up   23    572,742 
Palm Oil Sep 2010      6,886        Up   28    223,370 
Soyoil   Sep 2010      7,498        Up   22    250,110 

-Zheng Xiaolu contributed to this article; Dow Jones Newswires; 8610 8400-7715; tracy.zheng@dowjones.com

DJ MARKET TALK: BMD CPO Futures Lower; Support At MYR2,510/Ton

[Dow Jones] BMD CPO futures little changed in choppy trade, prices swinging between positive, negative territory on lack of fresh leads, traders say. "Some investors continue to liquidate positions to take profit and some set up long positions," says Malaysia-based broker. Market likely to remain choppy, may ease further to MYR2,510 level, says executive at global trading company. Supply fundamentals weighing on prices but rise in crude oil, soyoil supportive. Benchmark BMD June CPO futures trading MYR15 lower at  MYR2,519/ton.

(shie-lynn.lim@dowjones.com)
Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: India Soyoil Futures Down 0.5% At Two-Week Low

0540 GMT [Dow Jones] India April NCDEX soyoil futures down 0.5% at two-week low of INR452.45/10 kg as rapeseed arrivals pick up; soybean little changed at INR2,050/100 kg. India's rapeseed output for crop year through September likely 6.32 million metric tons vs 6.20 million tons year earlier. "Farmers are releasing more rapeseed stocks in the markets after a rally in prices," says Indore-based trader; rapeseed prices up around 12% in last 10 days. Firm BMD palm oil, eCBOT soybean futures limiting soyoil losses. Trader expects soyoil in INR450-INR456 band, soybean in INR2,035-INR2,065 range.

(ravi.bhushan@dowjones.com)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

DJ MARKET TALK: BMD CPO Futures Off Highs Midday;Supply Rise Weighs

[Dow Jones] BMD CPO futures off highs midday; may give up gains in afternoon session on profit-taking, traders say. "Prices couldn't break resistance at MYR2,557/ton in early trade, and this may prompt investors to liquidate their positions later in the day," says Malaysia-based trading executive; adds supply fundamentals likely to weigh as March CPO output improved. CPO market likely to remain rangebound between MYR2,520-MYR2,600/ton as investors to focus on March 1-31 palm oil exports as figures "should provide a better gauge whether (export) demand could put further pressure on palm inventories at the end of March," says analyst at Kuala Lumpur-based Kenanga Deutsche Futures. Benchmark BMD June CPO futures trading MYR6 higher midday at MYR2,540/ton, off intraday high of MYR2,557/ton.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: BMD CPO Futures Up; Limited Upside; MYR2,518 Support

[Dow Jones] BMD CPO futures higher on short covering as crude oil, soyoil prices rise during Asian hours, say traders. But upside likely limited as Malaysia's CPO output in March expected to rise 7%-10% on month, says trading executive in Kuala Lumpur; adds market likely to stay in range ahead of USDA
planting report Wednesday. "The current rise in CPO prices may be short-lived...a downside correction may drag prices to test support at MYR2,518/ton, then MYR2,500 today," says analyst in Singapore.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: India Soybean Futures Likely Up On Global Cues

0345 GMT [Dow Jones] India April NCDEX soybean futures likely to extend gains, tracking firm global markets; eCBOT soybean up 0.5%, BMD palm oil futures 0.4% higher. "But a record South American soybean crop and a pickup in local rapeseed arrivals will limit the upside," says Indore-based trader;
Brazil, Argentina soybean harvest in progress; India's rapeseed output for crop year through September likely 6.32 million tons vs 6.20 million tons year earlier. Trader expects soybean in INR2,028-INR2,070/100 kg range, soyoil in INR452-INR458/10 kg band; soybean last closed 0.9% higher at INR2,048.50,
soyoil down 0.4% at INR454.75.

(ravi.bhushan@dowjones.com)
Contact us in Singapore. 65 64154 140;  MarketTalk@dowjones.com

DJ MARKET TALK: Higher Soyoil May Support CPO Futures

[Dow Jones] Higher soyoil during Asian trading hours may provide some support to BMD CPO futures. "Soyoil prices are up on a technical rebound after a dip last Thursday. Also, investors are reluctant to push prices lower ahead of this week's (USDA) planting report," says trading executive at Kuala Lumpur-based
brokerage, adding this spells support for BMD CPO prices. May soyoil finished 25 points higher at 38.95 cents/pound on CBOT Friday; last trading 7 points higher on e-CBOT.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: BMD CPO Futures May Open Little Changed

[Dow Jones] BMD CPO futures may open little changed to MYR5 lower, traders say. CPO futures will likely extend last Friday's 1.6% slide on rising palm oil inventory levels as output expected to improve in March, says Kuala Lumpur-based broker. Most traders peg today's trading range at MYR2,530-MYR2,570/ton, with support at psychological MYR2,500/ton level. Benchmark BMD June CPO futures ended MYR41 lower at MYR2,534/ton Friday.

(shie-lynn.lim@dowjones.com) Call us in Kuala Lumpur : +(603) 2026 1233;

CPO futures --RM2,500 is next logical target

The Kuala Lumpur CPO futures market plummeted for the third consecutive week in a row last week.

The benchmark June 2010 contract closed last Friday at a 7-week low of RM2,534, down RM43 or 1.67 per cent over the week.

The price slide in the past three weeks, from the recent peak of RM2,722 looks like quite a big fall. Some players think it's time for a correction, a technical rebound.

However, with no signs that this market is anywhere near its nadir in the present bear phase the road ahead still leads south, though it might be a winding one.

Several factors are weighing this market down.

The recent strength in the US dollar, for one, was a depressant for all world commodities which uses the greenback as a medium of exchange for trade.

Weakness of crude oil, due to big supply buildup pressures and the black goo's inability to scale pass and stay above the US$80 (US$1 = RM3.31) a barrel level was another.

But what really pushed this markets against the ropes last week was the latest and one should add, disappointing export estimates.

Export monitors Societe Generale de Surveillance (SGS) and Intertek Agri Services' (IAS) March 1-25 export estimates for the commodity amounted to an average of 1.12 million tonnes, or some 24,000 tonnes above that exported in the corresponding period in February.

That's a huge comedown, compared to the earlier March 1-15 average export estimate of about 654,000 tonnes which was 67,500 tonnes or 11.75 per cent above that for first half February.

The industry expects a pickup in production in March, which does not bode well for hopes for much of a decline in end-March 2010 stocks, if any.

Conclusion: The RM2,500 a tonne psychological level is the next logical target.

- BUSINESS TIMES