Crude Palm Oil Ends Down on Rising Inventories – Range Bound Trade

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The benchmark January crude palm oil futures contract on Bursa Malaysia Derivatives (BMD) closed at MYR2,247 a metric ton, down MYR13 or -0.58%, little changed from the opening level of MYR2,260 after trading in a narrow range throughout the day on fears of rising inventories and spillover weakness from crude and soyoil.

Palm oil reserves were at 1.58 million tons at end-September, according to Malaysian Palm Oil Board (MPOB) estimate.

Cash palm olein for January/February/March traded at $690/ton and $687.50/ton, while April/May/June traded at $697.50/ton and $700/ton. Cash CPO for prompt shipment was offered MYR60 lower at MYR2,180/ton.

Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 18:00 MYT:

Month      Close    Previous   Change   High    Low
Nov 09     2,175    2,200      Dn 25    2,175   2,161
Dec 09     2,221    2,232      Dn 11    2,226   2,206
Jan 10     2,247    2,260      Dn 13    2,254   2,232
Feb 10     2,266    2,280      Dn 14    2,275   2,255

Daily Palm Oil News Summary:

Malaysia Palm Oil News

The International Palm Oil Congress 2009 (PIPOC 2009), hosted by MPOB and themed “Balancing Ecologic with Economics”, will be held at the Kuala Lumpur Convention Centre from November 9 – 12. PIPOC 2009 aims to discuss strategic research and development findings in the palm oil industry and capitalising on recent technology findings that will change the industry.

The MPOB will be asked by the Foreign Ministry to counter a ban on a sustainable palm oil magazine advertisement entitled “Palm Oil: The Green Answer”, by UK’s Advertising Standards Agency for alleged misleading claims. The agency took offence at the advertisement’s claim that palm oil “puts minimal strain on the environment” which it stressed could not be substantiated and therefore should not be repeated.

Indonesia Palm Oil News

PT Astra Agro Lestari (AALI.JK) withdrew 6,000 metric tons of CPO in an auction as bids were lower than the offer prices of IDR6,285-IDR6,575/kg. Another auction is expected on Friday.

PT Perkebunan Nusantara sold 8,500 metric tons of CPO in a government auction. A further 3,000 metric tons was withdrawn as bids were lower than the offer prices of IDR6,283-IDR6,423/kg.

World Palm Oil News

The Malaysian Palm Oil Association (MPOA) and the Gabungan Pekebun Kecil Indonesia (GAPKI), both organisations representing oil palm growers, have withdrawn their objection to the mandatory introduction of greenhouse gas (GHG) criteria under the production certification standards by the Roundtable on Sustainable Palm Oil (RSPO). The criteria prevent growers from using planting methods that releases GHG into the environment, such as planting on peatland.

South American and African oil palm producers, which form the Rest of the World chapter of RSPO, have offered to be the first participants of the proposed GHG voluntary scheme[...]

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