Crude palm oil futures on Malaysia’s derivatives exchange ended mostly higher Friday, fueled by a rally in CBOT soyoil and Chinese commodities despite the likelihood of a rise in August output.
The benchmark October contract on the Bursa Malaysia Derivatives exchange ended MYR45 or 1.7% higher at MYR2,718 a metric ton after it rose to a fresh 15-month high of MYR2,737/ton.
The most actively traded May soyoil contract on Dalian Commodity Exchange bounced up 1.5% to CNY8,280/ton, resuming an upward trajectory interrupted earlier this week by bearish macroeconomic data.
Soyoil futures on the Chicago Board of Trade were trading 79 points higher at 42.62 cents a pound by the end of trade on BMD.
China's vegetable oil demand is entering a seasonal high, buoying edible oil and feedmeal prices, as the Mid-Autumn Festival and National Day holidays approach.
Since July 20 Chinese buyers have booked 2.69 million tons of U.S. soybeans, extending an appetite that reached an all-time record of 6.2 million tons in June, fueling the rise in agricultural commodities, East Asia Futures said in a research note Friday.
Palm oil prices track soyoil as both compete for similar export destinations.
"There is a supply reduction in oilseeds and this is leading to greater dependency on palm oil as supply growth is lagging behind demand," a senior trading executive at Malaysia-based major plantation company said.
Some trade participants said palm prices may reach MYR2,800/ton next week due to supply tightness.
In the cash market, palm olein for October/November/December shipment was traded at $880/ton and January/February/March traded at $877.50/ton, free on board Malaysian ports, a trader in Singapore said.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,820/ton.
CME Group Inc.'s dollar-based October CPO futures were trading $1.75 lower at $850.50/ton at 1002 GMT, compared with Thursday's close of $852.25/ton.
Rupiah-denominated October CPO futures on the Indonesia Commodity and Derivative Exchange were 2.3% higher at IDR7,730 a kilogram at 1016 GMT.
Open interest on the BMD was 63,861 lots, versus 63,304 lots Thursday. One lot is equivalent to 25 tons.
A total of 24,669 lots of CPO were traded versus 20,250 lots Thursday.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Aug'10 2,795 2,809 Down 14 2,795 2,780 Sep'10 2,780 2,730 Up 50 2,792 2,744 Oct'10 2,718 2,673 Up 45 2,737 2,682 Nov'10 2,690 2,640 Up 50 2,704 2,650
-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com
(Chuin-Wei Yap in Beijing contributed to this story.)
(END) Dow Jones Newswires
August 13, 2010 06:32 ET (10:32 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
- European Veg Oil PM Palm Oil & Lauric Oil Prices – Feb 3
- European Veg Oil AM Palm Oil & Lauric Oil Prices – Feb 3
- India Edible Oil Prices Down On New Crop Arrival, Strong Rupee
- India Commodity Prices Including Palm Oil – Agriculture
- Crude Palm Oil Ends Up On Weekend Short Covering; Upside Limited
- Malaysian PM Cash Market Prices For Palm Oil – Feb. 3
- Indonesia Eyes Lower Pakistan CPO Duty, Adds Trade Path To Central Asia
- China Soybean Futures Retreat From 12-Week High On Profit Taking, Argentina Rains
- Malaysia Cash Palm Olein Prices Slip On Tepid Demand
- China Dalian Commodity Exchange Grain Stocks, Feb 03
- China Dalian Grain Futures Closing Prices, Volume
- BMD Crude Palm Oil (CPO) Futures Lower Midday; May Fall More
- Malaysian AM Cash Market Prices For Palm Oil – Feb. 3
- Malaysia May Reform CPO Export Tax Structure -Report
- BMD Crude Palm Oil (CPO) Futures Steady; To Remain Rangebound
