Palm rebounds from 2-week low

Published: 2009/05/20

CPO FUTURESJAKARTA: Malaysian palm futures rose 2.3 per cent yesterday to end a three-day losing streak, pulling back from a two-week low, ahead of export figures expected today, traders said.

The benchmark August contract rose RM60 to RM2,630 per tonne, after losing 8.2 per cent in previous three days. Overall volume was 17,599 lots of 25 tonnes each.Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will unveil May 1-20 Malaysian palm oil export data on May 20.

“People were talking about exports of 814,000 tonnes. It is a good number although I would say it is not very bullish,” said a trader at a Kuala Lumpur-based commodities brokerage.The world’s number 2 palm producer shipped 747,575-754,129 tonnes of palm oil products during the first 20 days of April, cargo surveyors have estimated.

Healthy demand from top vegetable oil buyers China and India at a time of low stocks and weak output could push Malaysian palm oil futures pass a key psychological level of RM3,000 soon, a top industry analyst said on Monday.

US soyoil for July contract was up 0.8 per cent in Asian trade and the most active September soyoil contract on Dalian’s Commodity Exchange rose 2.7 per cent.

RUBBER THE Malaysian rubber market closed easier yesterday in quiet trading, dealers said.They said rubber supplies began to improve in line with weather conditions."The increase in supply will pressure rubber prices," a dealer explained.

At noon, the Malaysian Rubber Board's official physical price for ty
e-grade SMR 20 shed 1.5 sen to 562.5 sen per kg from 564 sen per kg yesterday and latex in bulk slipped one sen to 415.5 sen per kg.

The unofficial physical price for tyre-grade SMR 20 however increased 2.5 sen to 564 sen per kg from 561.5 sen per kg on Monday and latex in bulk added two sen to 417 sen per kg. STINTHE Kuala Lumpur Tin Market (KLTM) closed higher yesterday on strong buying interest, dealers said.

The local tin price rose US$130 to settle at US$13,780 per tonne while the tin price on the London Metal Exchange (LME) was unchanged at US$13,700 per tonne.At the opening level, buyers bid for 125 tonnes while sellers offered 70 tonnes with Japanese, European and local traders dominating the market.

Turnover on the KLTM rose to 100 tonnes from the 90 tonnes on Monday.The price differential between the KLTM and LME widened to a premium of US$310 per tonne from US$180 per tonne on Monday. - Agencies