Malaysia Indices

Yesterday is a quiet day...
but if we observe the indices, we can see that the Agricultural Indices continue to PICK UP!
FBM Asian Palm Oil - MYR +214.85 (1%)
FBM Asian Palm Oil - USD +224.50 (+1.26%)

Crude Palm Oil Soars 6.5%; USDA Report, External Markets
By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com

Crude palm oil futures on Malaysia’s derivatives exchange rose close to a 27-month high Monday as investors rushed to cover short positions after a cut to a key U.S. forecast for global crops sent regional grain and vegetable-oil markets higher.

The benchmark December contract on the Bursa Malaysia Derivatives ended MYR170 higher at MYR2,930 a metric ton, after rising as much as 6.5% intraday to MYR2,940/ton, a level not seen since August 2008.

"CPO futures have room to rise more, although they may take a breather to consolidate gains," an executive at Kuala Lumpur-based trading company said. He tipped MYR3,000/ton as the market's next target.

The U.S. Department of Agriculture Friday cut forecasts in its monthly crop yield and stocks outlook, lowering predictions for soybean and corn yields by 2% and 4%, respectively, from a previous estimate, indicating tighter global supplies next year. Soyoil and soybean futures on the bellwether Chicago Board of Trade gained sharply following the report.

During the electronic session Monday, December CBOT soyoil rose as much as 102 points to 47.64 cents a pound. The contract was trading 42 points higher at 0952 GMT.

Leading vegetable-oil analyst Dorab Mistry said recently that global consumption of vegetable oils for food and biofuels will likely grow by six million tons during the year to March 2011, while growth in supply of those oils will likely be a dismal 2.3 million tons, due to adverse weather around the world.

Agricultural futures on the Dalian Commodity Exchange soared to their upper limits, with the May soybean contract rising 4% to a record of CNY4,275/ton.

Market participants mostly ignored the slight drop in the estimates for Malaysia's Oct. 1-10 palm oil exports issued by surveyors Intertek Agri Services and SGS (Malaysia) Bhd, as well as production and stocks data from the government-linked Malaysian Palm Oil Board.

Intertek pegged Oct. 1-10 exports at 395,015 tons, down 0.4% from a month earlier, while SGS put the figure at 382,828 tons, down 0.2%.

MPOB in its monthly report said September CPO output fell 2.7% on month to 1.56 million tons, while end-September stocks rose a tad to 1.71 million tons.

"The MPOB figures are within market expectations and considered as neutral," a Kuala Lumpur-based trading executive said. "Traders are mostly focused on external market cues."

Palm olein cargoes for delivery in April, May and June traded at $980/ton, free-on-board Malaysian ports, a Singapore-based broker said.

Cash CPO for prompt shipment was offered MYR160 higher at MYR2,950/ton.

Open interest on the BMD was 70,178 lots compared with 71,632 lots Friday, while a total of 31,248 lots of CPO were traded, up from 14,443 lots. One lot is equivalent to 25 tons.

Source: http://www.palmoilhq.com/PalmOilNews/asian-crude-palm-oil-soars-6-5-usda-report-external-markets/

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-Ayumi-