CPO Futures Rise Despite Bearish Export Data

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed higher yesterday despite bearish export data, a dealer said. The uptrend was supported by expectations of lower production, firmer soyoil prices in the Chicago Board of Trade and Dalian market and crude oil price, the dealer added. “Most market players ignored the bearish export figures and the long weekend holidays as they believed the market fundamental was still firm,” the dealer said. Market players expect Malaysia’s palm oil output next year to be sluggish due to adverse weather conditions and this would help to sustain prices, he added. Cargo surveyor Societe Generale de Surveillance reported that exports of Malaysian palm oil products for December fell 18.3 per cent to 1.193 million tonnes from 1.460 million tonnes shipped in November. Another cargo surveyor, Intertek Testing Services said that exports for December fell 15 per cent to 1.206 million tonnes from the November export of 1.418 million tonnes. The market closed today for the New Year holiday. On the futures market, January 2010 and February 2010 increased RM47 each to RM2,578 and RM2,620 per tonne respectively, while March 2010 gained RM68 to RM2,663 per tonne and April 2010 rose RM59 to RM2,660 per tonne. Turnover surged to 26,473 lots from 6,416 lots on Wednesday while open interest declined to 81,268 contracts from 83,552 contacts previously. On the physical market, January South was higher at RM2,600 per tonne from RM2,540 per tonne recorded on Wednesday. Source : Business Times

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