Crude palm oil futures on Malaysia's derivatives exchange ended higher Monday, as fresh buying was prompted by a fall in palm inventories to a nine-month low due to slower output growth, trade participants said.
The benchmark September contract on the Bursa Malaysia Derivatives ended MYR38 or 1.7% higher at MYR2,338 a metric ton. The contract never fell below the previous close during the session. Traders put immediate resistance for the benchmark at MYR2,350/ton.
The Malaysian Palm Oil Board surprised investors with their issuance Monday of data on exports, production and end-month inventories in June.
"Investors weren't expecting stocks to fall. This (MPOB data) lifted sentiment and induced buying interest during the afternoon session," a Kuala Lumpur-based trading executive said.
MPOB estimated palm oil inventories at 1.45 million tons, down 7.1% from end-May, compared with market expectations of an increase to around 1.59 million tons.
Palm oil output rose only 2.5% in June to 1.42 million tons, below market expectations of a 5%-10% rise.
Cargo surveyor Intertek Agri Services Saturday estimated Malaysia's palm oil exports during the July 1-10 period up 9% at 474,928 tons.
Another surveyor, SGS (Malaysia) Bhd., estimated the exports in the same period at 460,343 tons. Palm shipments to Pakistan, a major edible oils consumer, reached 93,750 tons, up more than five-fold from the same period in May, data from SGS showed.
Intertek data showed a two-fold increase in shipments to the Middle East at 38,490 tons for the July 1-10 period, from 18,800 tons in June.
Investors were also tracking the progress of monsoon rains in India, as any prolonged delay could hurt crop production and push up vegetable oil prices.
In the cash market, palm olein for August shipment was offered $10 higher at $795/ton.
Cash CPO for prompt delivery was offered MYR10 higher at MYR2,440/ton.
CME Group Inc.'s dollar-based September CPO futures contract for September was up $8.00 from its U.S. close at $724/ton.
Rupiah-denominated September CPO futures on the Indonesia Commodity and Derivative Exchange were 2.9% higher at IDR6,300 a kilogram at 0925 GMT, with four lots done.
The October contract was trading 0.4% higher at IDR6,295/kg with 80 lots changing hands. One lot is equivalent to 10 tons.
Open interest on the BMD was 73,512 lots, versus 72,569 lots Friday. One lot is equivalent to 25 tons.
A total of 15,227 lots of CPO were traded versus 16,138 lots Friday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Jul'10 2,440 2,430 Up 10 2,449 2,435 Aug'10 2,384 2,344 Up 40 2,385 2,356 Sep'10 2,338 2,300 Up 38 2,341 2,310 Oct'10 2,321 2,287 Up 34 2,322 2,295
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(END) Dow Jones Newswires
July 12, 2010 06:37 ET (10:37 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
More Recent Palm Oil News 
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Crude Palm Oil Recovers Late On Short Covering
- Crude Palm Oil Ends Down As Demand Prospects Weaken
- Crude Palm Oil Rises Slightly; Weak Demand Limits Upside
- Crude Palm Oil Ends Up On South America Crop Worries
- Crude Palm Oil Rises On Pre-Holiday Short-Covering
- Crude Palm Oil Falls Due To Bearish Export Outlook
- Crude Palm Oil Ends Higher On South America Weather
- Crude Palm Oil Ends Down On Profit Taking; USDA Report In Focus
- Crude Palm Oil Rises In Light Trade; USDA Data In Focus
- Crude Palm Oil Steady; South America Weather May Underpin
- Crude Palm Oil Ends Up In Light Trade; Fresh Cues Awaited
- Crude Palm Oil Ends Up On Weather Concerns; More Gains Likely
- Crude Palm Oil Ends Down On Profit Taking, Europe Worries
- CPO Ends Unchanged; May Slip Toward MYR3,200 After Recent Rally
PRO Palm Oil Live Market News
- China Soybean Futures Rise A Tad On South America Output Worries
- China Dalian Commodity Exchange Grain Stocks, Feb 07
- China Dalian Grain Futures Closing Prices, Volume
- Asia-Pacific Commodities Events Calendar
- Southeast Asia Palm Oil Weather – Feb 6
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Feb 6
- European Veg Oil AM Palm Oil & Lauric Oil Prices – Feb 6
- India Commodity Prices Including Palm Oil – Agriculture
- China January Soybean Imports Likely 4.86 Mln Tons -Ministry
- SUBSCRIBERS: No Asian CPO Closing Comment Monday, Tuesday
- China Soybean Futures Hit 3-Month High On Strong U.S. Jobs Data
- China Dalian Commodity Exchange Grain Stocks, Feb 06
- China Dalian Grain Futures Closing Prices, Volume
- SUBSCRIBERS: No Malaysian Palm Oil AM, PM Cash Market Prices Mon-Tue
- Asia-Pacific Commodities Events Calendar
