Low Graphics Site
 
 
 
 
 
 
|
|
|
|
August 09, 2006
|
Wednesday
|
Rajab 13, 1427
|
Malaysian palm oil jumps
KUALA LUMPUR, Aug 8: Malaysian crude palm oil futures closed 2.5 per cent higher on Tuesday, boosted by robust demand, firm crude oil prices and heavy fund buying. Traders said last month's strong export trend was continuing in August with good buying coming from China, Europe and Pakistan.
Crude oil is still very strong and biodiesel people are covering, said one dealer. Shipments have been very good so far, I think first 10 days export numbers will show a healthy growth. The benchmark third-month October contract on the Bursa Malaysia Derivatives ended up 41 ringgit at 1,659 ringgit ($453) a ton.
Other contracts rose between 36 and 50 ringgit a ton. Overall volumes stood at 11,870 lots of 25 tons each. Open interest was high at 62,293 lots which brokers said was due to heavy buying by hedge funds. We have never seen this kind of open interest, it has to be new players, said one broker.
Societe Generale de Surveillance, a cargo surveyor closely watched by the market, said last week exports of Malaysian palm products in July rose 11.8 per cent from a month earlier.
The state-run Malaysian Palm Oil Board is due to release July export and production numbers on August 10.
US crude surged 3 per cent to $77 a barrel on Monday after pipeline damage forced BP to shut down an Alaskan oil field that pumps 8 per cent of US domestic output.
The prices eased from a new record-high on Tuesday as traders took profits but palm traders said it was still high for biodiesel manufacturers to cover.
US light, sweet crude oil was down 11 cents at $76.87 a barrel . It jumped 3 per cent to $76.98 a barrel on Monday, nearing its record of $78.40 hit in July.
The palm oil market ignored a decline in soyaoil prices which it usually tracks as both oils have common use in products ranging from food and soap to cosmetics and biodiesel.
Soyoil was down 0.24 to 0.37 cent per lb., with August down 0.25 at 26.16 cents per lb. In the physical market, crude palm oil for August shipment saw sellers at 1,630 ringgit a ton and bids at 1,620. Trades were between 1,610 and 1,625 ringgit a ton.—Reuters
|
