CPO FUTURES
PALM oil climbed to the highest level yesterday in more than seven months as crude oil traded above US$80 a barrel, improving the outlook for biofuels made from vegetable oils.
Palm oil for March delivery advanced 0.8 per cent to RM2,702 a metric ton on the Malaysia Derivatives Exchange, the highest level since May 13. The contract rose as much as 1.6 per cent in intraday trading.
Crude oil traded near a 14-month high in New York as cold weather improved the outlook for energy demand in the world’s largest energy-consuming nation. The eastern half of the US is facing its coldest winter since 1982, AccuWeather.com said. Oil traded at US$81.72 a barrel at 5.59 pm Singapore time.
“We have to prepare for more supply side disruptions due to weather phenomenon,” said Sunny Verghese, chief executive of Olam International Ltd., a Singapore-based food ingredients supplier.
The cold snap “is an added bit” that may affect crops in the northern hemisphere including grains, sugar, rice, oil palms and cocoa trees, he said yesterday.
Indonesia, the biggest palm oil producer, accepted bids for 8,000 tons in auctions in Jakarta yesterday. Palm oil for delivery from Dumai port in Riau province traded at 7,630 rupiah a kilogram and 7,641 rupiah a kilogram, up from between 7,568 rupiah and 7,575 rupiah on Tuesday.
PT Astra Agro Lestari, the nation’s largest publicly traded plantation company, sold 6,000 tons of 7,000 tons palm oil offered. Separately, PT Kharisma Pemasaran Bersama Nusantara, that sells palm oil from state plantations, accepted bids for 2,000 tons out of 5,000 tons of palm oil auctioned
A cold front in China will move south today to provinces of Zhejiang, Jiangxi and Hunan, the China Meteorological Administration said in an e-mailed statement yesterday.
In the 2008 frost, rapeseed output in China, the world’s biggest grower, was reduced as 64 per cent of the 1.1 million acres (445,154 hectares) planted in the key growing region of Jiangsu was damaged in January, sparking an 11-per cent rally in the first quarter for palm oil as a substitute.
“The China frost provides a positive influence to market sentiment,” even though there are no reports of crop damage yet, said Ryan Long, a trader at OSK Investment Bank in Kuala Lumpur.
September-delivery palm oil on the Dalian Commodity Exchange rose 0.4 per cent to 7,376 yuan a metric ton, the highest since September 4 2008.
Soybean oil for March delivery in Chicago rose as much as 0.9 per cent to 41.45 cents a pound in Asian trading, and is trading at 41.20 cents at 5.58 pm, making it USD$110 a ton more expensive than palm oil, according to Bloomberg data.
RUBBER
MALAYSIAN rubber prices closed higher yesterday despite the slight fall in crude oil price, said a dealer.
World crude oil price slipped to below US$82 per barrel yesterday, and this had also dented rubber futures prices on the Tokyo Commodity Exchange (TOCOM), but helped boost the physical market on Tuesday.
At noon, the Malaysian Rubber Board official physical price for tyre-grade SMR20 rose 6.5 sen to 982.5 sen per kg and latex in bulk added 7.0 sen to 626.5 sen per kg..
The unofficial sellers' price for tyre-grade SMR 20 was up 7 sen at 987 sen per kg and latex in bulk gained 7.5 sen to 629.5 sen per kg.
TIN
THE tin price on the Kuala Lumpur Tin Market (KLTM) closed higher yesterday, up by US$50 to settle at US$17,450 per tonne, despite the slight overnight fall on the London Metal Exchange (LME), dealers said.
They said the uptrend of the commodity, although at a moderate pace, was expected to continue in the near term.
The tin price on the LME, which usually influences global prices, dropped US$75 overnight to settle at US$17,375 per tonne.
At yesterday's opening, the local market saw bids outnumbering offers by 110 tonnes to 66 tonnes.
Turnover also went up to 85 tonnes from the 55 tonnes on Tuesday. The premium between the KLTM and the LME widened slightly to US$365 per tonne from US$245 per tonne previously. - Agencies
(Source: btimes.com.my)
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