Palm Boosted by Favourable Export Figure

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed

mostly higher yesterday, boosted by favourable export figures, dealers

said.

Cargo surveyor Intertek Testing Services reported that

Malaysian palm oil exports for the February 1 to 10 period increased 5.4

per cent to 370,727 tonnes from 351,818 tonnes shipped from Jan 1 to

10.

Another cargo surveyor Societe Generale de Surveillance

stated that Malaysian palm oil exports for February 1 to 10 rose 18.5

per cent to 410,459 tonnes from 346,462 tonnes shipped from Jan 1 to 10.

The Malaysian Palm Oil Board (MPOB) reported that Malaysia’s palm oil

exports in January 2010 were up by 19.39 per cent to 1.462 million

tonnes from 1.224 million tonnes in the previous month.

MPOB said

that total palm oil stocks in January 2010 declined to 2.1 million

tonnes from 2.24 million tonnes due to higher exports and lower

production during the month.

Of the total, CPO stocks went down

to 1.131 million tonnes from 1.197 million tonnes in December 2009.

According

to one of the dealers, the current low stock level also contributed to

the uptrend on CPO prices.

This was likely to further boost

market sentiment, he said.

At yesterday’s close, the February 2010

contract rose RM10 to settle at RM2,570 per tonne, March 2010 increased

RM4 to RM2,565 per tonne, April 2010 added RM2 to RM2,563 per tonne and

May 2010 was unchanged at RM2,555 per tonne.

Turnover declined

to 11,661 lots from 15,785 lots Tuesday while open interest increased to

77,648 contracts from 76,079 contracts previously.

On the

physical market, February South was unchanged at RM2,580 per tonne.

Source : Business Times

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