Crude Palm Oil Ends Up; Off Lows As MPOB Data Caps Losses

Crude palm oil futures on Malaysia’s derivatives exchange rose marginally, extending its run for a seventh day on short covering and bullish supply-demand data.

The benchmark April CPO contract on the Bursa Malaysia Derivatives ended MYR2 higher at MYR2,563 a metric ton, after spending most of the two sessions trading sideways.

Data released Wednesday by the government-linked Malaysian Palm Oil Board showed lower palm oil output and inventory levels for January, lifting prices despite selling pressure in external markets, trade participants said.

"While the January data fell within market expectations, most investors are expecting February's output to be lower by 15%-18%," and that helped to keep prices in positive territory, said S Paramalingam, executive director at Kuala Lumpur-based brokerage Pelindung Bestari Sdn Bhd.

Palm oil inventories declined to 2.0 million tons in January, with output falling to a nine-month low at 1.32 million tons, MPOB said in its monthly report.

Many traders said the bullish MPOB data, which had been widely anticipated before its release, had already been factored into prices Tuesday, when the market rose to an intraday high of MYR2,570, its highest level since Jan. 12.

MPOB also reported that CPO exports had risen 19.4% to 1.46 million tons in January.

Cargo surveyors Intertek Agri Services put Feb. 1-10 exports at 370,727 tons, up 5.4% on month. Another surveyor, SGS (Malaysia) Bhd., put exports at 410,459 tons.

Palm oil prices may stay in a MYR2,500-MYR2,600/ton range for the next two weeks as lower output in February should mean tighter palm oil stocks, a trading executive at a Kuala Lumpur-based commodities brokerage said.

March soyoil futures on the Chicago Board of Trade traded lower during Asian trading hours as the U.S. Department of Agriculture report released Tuesday failed to lift the market, traders said.

March soyoil fell as much as 39 points to 37.99 cents a pound on e-CBOT. The March contract was trading 21 points lower at 38.17 cents/pound by the end of trade on BMD.

The USDA projected 2009-10 soybean ending stocks of 210 million bushels, down 35 million from the January estimate of 245 million, but it raised Brazil's soybean production for Brazil at 66 million tons, up 1 million tons from last month due to higher yields.

In the cash market, palm olein for April/May/June traded at $780/ton, $782.50/ton and $780/ton, said a Singapore-based trader.

Cash CPO for prompt shipment was offered unchanged at MYR2,580/ton.

Open interest on the BMD was 77,648 lots Wednesday, up from 76,079 lots. One lot is equivalent to 25 tons.

Some 11,661 lots of CPO were traded versus 15,505 lots Tuesday.

Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1000 GMT: 

Month      Close    Previous   Change    High    Low
Feb 2010   2,570    2,560      Up 10     2,570   2,565
Mar 2010   2,565    2,561      Up 04     2,571   2,560
Apr 2010   2,563    2,561      Up 02     2,566   2,553
May 2010   2,555    2,555      Unchanged 2,561   2,546 

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

(END) Dow Jones Newswires

February 10, 2010 05:54 ET (10:54 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.

Tagged as: BMD, Brazil, Bursa Malaysia, CBOT, CPO, Crude Palm Oil, Futures, Intertek, Malaysia, MPOB, Palm Oil, Palm olein, SGS, Singapore, Soybean, Soyoil

More Recent Palm Oil News

• Crude Palm Oil Futures End Lower On Profit-Taking
• Indonesia to export only 50% of CPO output by 2015
• Reject efforts to limit growth of oil palm estates in Malaysia
• Crude Palm Oil Ends Up On Record Low End-Month Stocks
• Crude Palm Oil Prices Likely Under Pressure If Crude Drops -Fry
• Malaysia Feb CPO Output 1.16 Mln Tons; Down 12.5% On Month -MPOB
• Palm Oil Demand to Rise Faster Than Production, TransGraph Says
• CME US Dollar Crude Palm Oil Futures Specifications
• Crude Palm Oil Ends Down On Weak Crude Oil Futures
• CME Group Announces Launch of Dollar-Denominated Crude Palm Oil Futures
• Palm Oil Players Prefer Malaysia For Trading
• Palm Oil Industry Needs To Increase Yield Through Research And Innovation
• Crude Palm Oil Ends Up; Market Expects Bullish Forecasts
• Crude Palm Oil Ends Down; Choppy Trade; Outlook Awaited
• Crude Palm Oil Ends Up; Bullish Outlook, Short Covering

PRO Palm Oil Live Market News

• CBOT Soy Outlook: Seen Firm; Dollar Weakness, Oversold
• Indian Edible Oil Prices Mixed; High Rapeseed Arrivals Weigh
• European Veg Oil AM Palm Oil & Lauric Oil Prices- Mar 12
• European Veg Oil AM Soft Oil Prices- Mar 12
• India Commodity Prices Including Palm Oil – Agriculture
• Asian Crude Palm Oil Ends Down; Weak Cash Demand, Long Liquidation
• INTERVIEW: Biomaza, Lipochem To Build $10 Mln Biodiesel Plant
• Malaysian Cash Market Prices For Palm Oil – March 12
• Astra Agro Withdraws 5,250 Tons Crude Palm Oil (CPO) Offered Fri; Bids Too Low
• PT KPB Withdraws 3,500 Tons Crude Palm Oil (CPO) Offered Fri Due To Low Bids
• India 2009-10 Vegetable Oil Import Likely Up At 9 Mln Tons – Official
• India STC Tenders To Import 12,000-18,000 Tons RBD Palm Olein
• *India STC Tenders To Import 12,000-18,000 Tons RBD Palm Olein
• China Soybean Futures Settle Down With Metals; Rate Hike Worries
• Malaysia Cash Palm Down On BMD Fall; Demand Weak