Berita Terbaru

14 Oct 2008

Malaysian palm futures ease on soyoil, recession fears

Malaysian palm futures ease on soyoil, recession fears

        JAKARTA, Oct 13 (Reuters) - Malaysian palm oil futures fell more than 1 percent on Monday on weak rival soyoil and lingering fears of a global recession that will slow demand. A government move to raise the annual export quota for crude palm oil by 50 percent, in an attempt to ease surging inventory that has hurt prices, lent some support to the market, dealers said. 


   The benchmark December contract <KPOc3> on the Bursa Malaysia Derivatives Exchange edged down 23 ringgit, or 1.3 percent, at 1,750 ringgit ($499) a tonne.

   "With soybean oil still minus and crude oil below $80, the market tended to ease today," said a dealer in a local brokerage firm.

   "The bearishness is not over yet. Investors are still waiting for the 1,500-ringgit level," the dealer said, adding palm oil would hit that level when crude oil touched $50-$60 per barrel

   Contracts for other traded months fell between 13 and 28 ringgit. Overall volume stood at 5,718 lots of 25 tonnes each.

   Malaysia, the world's second-largest producer of palm oil, will raise its annual export quota for crude palm oil to 3 million tonnes from 2 million tonnes as part of the government's efforts to help reduce growing palm oil stocks, Commodities Minister Peter Chin said on Monday. [ID:nKLR4112]

   Chin said the government also hopes to push for a biofuel mandate to require the replacement of five percent of domestic diesel consumption with palm-based biofuel.

   Prices of the tropical oil have tumbled more than 60 percent from their high earlier this year on a combination of swelling stocks and slowing demand heightened by a weakening global economy. 

   "It is supportive on the market but not much. We have financial turmoil. The quota does not mean anything because demand will be slack generally," said another dealer at a foreign brokerage firm.

   Oil climbed more than $2 on Monday, recouping part of Friday's 10 percent dive as European leaders took bolder steps to pull the banking sector out of crisis, but some gains faded as traders curbed their initial enthusiasm. [O/R]

   U.S. soybean futures fell more than 2 percent on Monday to a 13-month low, hit by bearish crop data and mounting concerns that the global financial crisis may drag the economy into recession, reducing commodities demand. [GRA/]

   In the physical market, crude palm oil for October delivery stood at 1,820/1,880 in south region. Trades were done at 1,800-1,820 ringgit a tonne.

Palm, soy and crude oil prices at 0551 GMT

Contract       Last  Net chg  Settle Open  High  Low  olume

PALM OIL OCT8  1820  -19.00    1839  1820  1820  1816    4

PALM OIL NOV8  1780  -13.00    1793  1790  1815  1780   745

PALM OIL DEC8  1750  -23.00    1773  1750  1783  1742  2985 

PALM OIL JAN9  1746  -17.00    1763  1730  1775  1730  1822

CBOT soyoil*  36.50  + 0.00   36.50   N/A  0.00  0.00   N/A

NYMEX crude** 79.91  + 2.21   77.70   N/A 81.07 79.45   N/A

Palm oil prices in Malaysian ringgit per tonne

 * Soy oil in U.S. cents per pound

** Crude in USD per barrel

 

Source : thomsonreuters

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