Crude Palm Oil Ends Up On Soyoil; Trade Thin, Volatile

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Crude palm oil futures on Malaysia’s derivatives exchange ended higher in thin, rangebound trade Tuesday, supported by higher soyoil futures in after-hours trade, said trade participants.

The benchmark April CPO contract on the Bursa Malaysia Derivatives ended MYR7 at MYR2,452 a metric ton after moving in both positive and negative territory.

Although the BMD was closed Monday for a holiday, cargo surveyors released exports data for January, which provided some support for CPO prices today but weren't bullish enough to boost prices.

Malaysia's January palm oil exports rose 24% from December to 1.48 million tons, according to cargo surveyor SGS (Malaysia) Bhd.

An estimate by another surveyor, Intertek Agri Services, put January exports at 1.50 million tons.

Both estimates were within market expectations of a rise to 1.41 million-1.50 million tons.

"Although January's exports were up significantly, many don't expect the increase to be repeated this month, and that sentiment weighed on prices," said a Kuala Lumpur-based trader.

The trader said exports may start to decline as China has bought sufficient supplies ahead of the Lunar New Year holidays, and will likely not need new supplies until late February or early March.

CPO prices were in negative territory in morning trade but found support in higher soyoil futures in after-hours trade. By the end of BMD trade, soyoil futures were up around 25 points.

In the cash market, palm olein for April/May/June traded at $745/ton and $742.50/ton, free on board Malaysian ports, said a Singapore-based trader.

Cash CPO for prompt delivery was offered MYR10 higher at MYR2,480/ton.

Open interest on the BMD was 74,332 lots, up from 74,003 lots traded Friday. One lot is equivalent to 25 tons.

A total of 14,734 lots of CPO were traded versus 14,890 lots Friday.


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

Month      Close    Previous   Change    High    Low
Feb 2010   2,463    2,450      Up 13     2,473   2,447
Mar 2010   2,458    2,445      Up 13     2,463   2,430
Apr 2010   2,452    2,445      Up 07     2,462   2,427
May 2010   2,449    2,441      Up 08     2,460   2,425 

-By Fawziah Selamat, Dow Jones Newswires; +62 21 3983 1277; fawziah.selamat@dowjones.com

(END) Dow Jones Newswires

February 02, 2010 06:30 ET (11:30 GMT)

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

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