DJ Asian Crude Palm Oil Ends Mostly Lower On Soyoil, Weak Exports 09.11.2011
KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended mostly lower Wednesday after moving both ways, weighed by weaker soyoil and expectations that demand is tapering off.
The benchmark January contract on the Bursa Malaysia Derivatives exchange ended 0.4% lower at MYR3,034 a metric ton after rising as much as 0.8% to MYR3,068/ton, the highest since Sept. 21.
CBOT December soyoil was trading 0.8% lower at 51.41 cents a pound at the end of BMD trade.
Shipments of palm oil from Malaysia likely declined by 8%-9% to 455,000 tons in the first 10 days of November, traders said, as buyers usually switch to competing oils in winter when palm oil tends to turn cloudy and gelatinous in cold weather.
Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., are scheduled to issue Nov. 1-10 export data on Thursday.
"Market participants also covered shorts and squared off positions ahead of the USDA crop report tonight and MPOB data and export estimates due Thursday," a commodities broker in Kuala Lumpur said.
Still, bullish analysts expect CPO's declines to be limited on concerns that the year-end monsoon in Malaysia could slow harvesting rounds and halt transportation of palm fruits from estates to mills and refineries.
In the cash market, refined palm olein for November was offered unchanged at $1,040/ton, free on board Malaysian ports, a physical market broker in Singapore said.
Cash CPO for prompt shipment was offered MYR5 higher at MYR3,065/ton.
Open interest on the BMD was 133,801 lots, versus 131,177 lots Tuesday. One lot is equivalent to 25 tons.
A total of 23,485 lots of CPO were traded versus 25,610 lots Tuesday.
Closing BMD CPO futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Nov'11 3,065 3,052 +13 3,065 3,065 Dec'11 3,044 3,050 -6 3,068 3,034 Jan'12 3,034 3,045 -11 3,068 3,027 Feb'12 3,042 3,046 -4 3,066 3,028