Crude Palm Oil Ends Down 1% On Profit-Taking

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Crude palm oil futures on Malaysia’s derivatives exchange ended lower Monday as investors took cues from weak export figures and a stronger ringgit to book profits.

The slide in crude and soyoil futures dragged prices lower towards the end of trade, trade participants said.

September crude oil on the New York Mercantile Exchange slipped 36 cents to $78.62 a barrel after rising above $79 in Asia.

The benchmark October contract on the Bursa Malaysia Derivatives exchange ended MYR25 or 1% lower at MYR2,473 a metric ton after moving in a MYR2,472-MYR2,525 range.

Many among trade participants said the dwindling export figures by cargo surveyors SGS (Malaysia) Bhd. and Intertek Agri Services indicate that overall exports in July are expected to be lower, placing pressure on prices.

Intertek estimated exports fell 4% on month at 1.07 million tons for the first 25 days of July while SGS put the figure at 1.10 million tons, down 0.9% on month. Both surveyors estimated June 1-25 exports at 1.11 million-1.12 million tons.

Exports to most major export destinations fell but bigger purchases by Pakistan limited the fall in exports. SGS data showed Pakistan had bought 194,966 tons during the July 1-25 period, close to a two-fold increase from the same period in June.

An executive at the Pakistan Edible Oils Refiners Association said in a recent interview Pakistan's palm oil imports from Malaysia may reach 250,000 tons in July, to meet increased demand for the Islamic fasting month of Ramadhan.

In the cash market, palm olein for September was traded at $820/ton and October/November/December at $805/ton and $807.50/ton free on board Malaysian ports, a Singapore-based trading executive said.

Cash CPO for prompt delivery was offered MYR20 lower at MYR2,550/ton.

CME Group Inc.'s dollar-based CPO futures weren't traded during Asian hours.

Rupiah-denominated October CPO futures on the Indonesia Commodity and Derivative Exchange were trading 0.4% lower at IDR6,705 a kilogram at 1032 GMT.

Open interest on the BMD was 68,489 lots, versus 68,218 lots Friday. One lot is equivalent to 25 tons.

A total of 18,236 lots of CPO were traded versus 16,262 lots Friday.


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

Month   Close  Previous  Change   High    Low
Aug'10  2,550     2,558  Down 08  2,577  2,540
Sep'10  2,491     2,510  Down 19  2,531  2,491
Oct'10  2,473     2,498  Down 25  2,525  2,472
Nov'10  2,470     2,499  Down 29  2,523  2,470 

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

(END) Dow Jones Newswires

July 26, 2010 06:44 ET (10:44 GMT)

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

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