Crude palm oil
futures on Malaysia's derivatives exchange ended higher Monday as
investors covered short positions due to expectations that firm export
demand the rest of the month could help reduce end-month inventory
levels.
The benchmark
January contract at Bursa Malaysia Derivatives ended 3% higher at 2,577
ringgit a metric ton after moving in a range of MYR2,497-MYR2,580/ton.
Strong Oct. 1-20
exports prompted some market participants to lower their stock
projections for end-October to 2.5 million tons, down from previous
estimates of 2.70-2.80 million tons, a Singapore-based trading executive
said.
Cargo surveyor
Intertek Agri Services last week said palm oil exports during the Oct.
1-20 period rose 14% from the same period the previous month to 1.06
million tons. Another surveyor, SGS (Malaysia) Bhd., Monday put exports
for the period at 1.05 million tons, an increase of 17%.
End-October
stockpiles of 2.5 million tons would represent a modest 0.8% rise from
the previous month, compared with a 17% jump to 2.48 million tons as of
end-September.
"Some speculative
investors have initiated fresh long positions in BMD CPO after a sharp
selldown earlier this month, which helped to prop up the market today," a
dealer at a Kuala Lumpur-based investment bank said.
Open interest on the BMD was 151,660 lots, versus 148,945 lots Friday. One lot is equivalent to 25 tons.
A total of 37,259 lots of CPO were traded versus 27,875 lots Friday.
Ending BMD CPO futures prices in MYR/ton: Month Close Previous Change High Low Nov'12 2,469 2,404 +65 2,469 2,395 Dec'12 2,528 2,475 +53 2,544 2,460 Jan'13 2,577 2,501 +76 2,580 2,497 Feb'13 2,597 2,540 +57 2,610 2,530
