Sony_Boy
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Crude Palm Oil At 7-Month High On Short-Covering, Demand Outlook (31 Dec 2009)
yeah, thanks to crude oil nak cecah USD80..
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Thursday as investors covered shorts in anticipation of growing demand in 2010 from China and India, the world’s top two vegetable oil consumers.
The benchmark March contract on the Bursa Malaysia Derivatives ended MYR68 or 2.6% higher at MYR2,663 a metric ton after rising to MYR2,666, a level not seen since May 19. Palm oil has surged 56% this year as a drought in Argentina damaged its soybean crop, leading to supply tightness in soyoil, a substitute for palm oil.
Prices came off highs in both sessions as cargo surveyors estimated Malaysia's palm oil exports in December fell 15%-18% on month to 1.19 million to 1.21 million tons. But the "rally in commodities (crude, soyoil) and a bullish demand outlook in 2010" kept CPO prices above MYR2,600, said a Malaysia-based exporter.
India and China's appetite for palm oil may continue to increase as per capita consumption of vegetable oils in both nations will rapidly rise in 2010 because economies are on the mend, London-based vegetable oils analyst Dorab Mistry said earlier this month.
In anticipation of rising demand, Mistry also said CPO prices may rise to MYR2,800-MYR3,000 by March next year. He said Malaysia's palm oil production is likely to fall next year from this year's level of 17.5 million tons due to a replanting program.
Trade on the BMD was also supported by Friday's launch of the world's third largest free-trade area between China and the Association of Southeast Asian Nations, as this is expected to boost commodity exports between Asean countries and resource-hungry China. Under the free trade agreement signed in 2002, China, Indonesia, Thailand, the Philippines, Malaysia, Singapore and Brunei will have to reduce tariffs of most goods to zero percent. Most of the goods that will become tariff-free in January are currently subject to import taxes of around 5%.
In the cash market, cash palm olein for January was traded at $775/ton and $772.50/ton, while April/May/June traded at $805/ton and $807.50/ton, free-on-board Malaysian ports, said a Singapore-based trader. Cash CPO for prompt delivery was offered MYR60 higher at MYR2,600/ton. Open interest on the BMD was 76,748 lots, down from 79,032 lots Wednesday. One lot is equivalent to 25 tons. A total of 21,892 lots of CPO were traded versus 6,414 lots traded Wednesday.
kan dh ckp, tgk, die dh touch 2650..
yeah, thanks to crude oil nak cecah USD80..
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Thursday as investors covered shorts in anticipation of growing demand in 2010 from China and India, the world’s top two vegetable oil consumers.
The benchmark March contract on the Bursa Malaysia Derivatives ended MYR68 or 2.6% higher at MYR2,663 a metric ton after rising to MYR2,666, a level not seen since May 19. Palm oil has surged 56% this year as a drought in Argentina damaged its soybean crop, leading to supply tightness in soyoil, a substitute for palm oil.
Prices came off highs in both sessions as cargo surveyors estimated Malaysia's palm oil exports in December fell 15%-18% on month to 1.19 million to 1.21 million tons. But the "rally in commodities (crude, soyoil) and a bullish demand outlook in 2010" kept CPO prices above MYR2,600, said a Malaysia-based exporter.
India and China's appetite for palm oil may continue to increase as per capita consumption of vegetable oils in both nations will rapidly rise in 2010 because economies are on the mend, London-based vegetable oils analyst Dorab Mistry said earlier this month.
In anticipation of rising demand, Mistry also said CPO prices may rise to MYR2,800-MYR3,000 by March next year. He said Malaysia's palm oil production is likely to fall next year from this year's level of 17.5 million tons due to a replanting program.
Trade on the BMD was also supported by Friday's launch of the world's third largest free-trade area between China and the Association of Southeast Asian Nations, as this is expected to boost commodity exports between Asean countries and resource-hungry China. Under the free trade agreement signed in 2002, China, Indonesia, Thailand, the Philippines, Malaysia, Singapore and Brunei will have to reduce tariffs of most goods to zero percent. Most of the goods that will become tariff-free in January are currently subject to import taxes of around 5%.
In the cash market, cash palm olein for January was traded at $775/ton and $772.50/ton, while April/May/June traded at $805/ton and $807.50/ton, free-on-board Malaysian ports, said a Singapore-based trader. Cash CPO for prompt delivery was offered MYR60 higher at MYR2,600/ton. Open interest on the BMD was 76,748 lots, down from 79,032 lots Wednesday. One lot is equivalent to 25 tons. A total of 21,892 lots of CPO were traded versus 6,414 lots traded Wednesday.
