CPO futures lower on bearish sentiment

CPO FUTURES

KUALA LUMPUR: Crude palm oil futures closed lower yesterday on concerns of the global economy following Hurricane Sandy which caused havoc to major cities in the US, dealers said.

Dealers said prices were also lower on Indonesia’s decision to cut its export tax for CPO from 13.5 per cent to nine per cent.

November 2012 lost RM33 to RM2,392 a tonne, December 2012 eased RM41 to RM2,451, January 2013 fell RM47 to RM2,501 and February 2013 slipped RM39 to RM2,542.

Turnover slipped to 33,602 lots from 36,345 lots while open interest fell to 158,102 from 160,794 contracts previously.

On the physical market, November South fell to RM2,380 a tonne from RM2,400 on Monday.

OIL

LONDON: Crude oil rose towards US$ 110 (US$ 1.00 = RM3.06) yesterday, supported by worries of potential supply disruption on the US East Coast, being battered by Hurricane Sandy, although fears of weaker demand capped gains.

Brent crude for December rose 13 cents to US$ 109.57 a barrel by 1210 GMT, recovering from US$ 108.75 earlier. US crude for December was up 40 cents at US$ 85.94.

“The shutdown of refineries means there are breaks in the supply chain,” said Michael Hewson, senior markets analyst at CMC Markets. “(This) means there will be a little bit of scarcity, so that can underpin prices.”

RUBBER

KUALA LUMPUR: The local rubber market closed sharply lower yesterday in tandem with the decline on the Tokyo Commodity Exchange which was impacted by losses in Japanese stocks, dealers said.

The dealers said the market was also weighed on by Hurricane Sandy in the US which affected the trading of commodities there and dampened overall sentiment in commodities markets.

At noon, the Malaysian Rubber Board’s official physical price for tyre-grade SMR 20 lost 14 sen to 864 sen a kg, while latex in bulk eased 4.5 sen to 592 sen.

The unofficial closing price for tyre-grade SMR20 depreciated by nine sen to close at 857.50 sen a kg and latex-in-bulk slipped 6.5 sen to 588 sen a kg.

GOLD

LONDON: Gold firmed yesterday as stock markets rose and the dollar weakened, but moves were limited ahead of a US jobs report later this week, a closely watched barometer of the world’s biggest economy.

Gold was at US$ 1,714.1 by 1149 GMT, up 0.25 per cent, while US gold for December rose US$ 6.10 to US$ 1,714.80.

Platinum and palladium prices rose, bolstered by violence at a major South African platinum mine.

Spot platinum was up 1.09 per cent at US$ 1,546.75 an ounce, and palladium was up 1.48 per cent at US$ 594.6 an ounce. Silver was up 1.01 per cent at US$ 32.08 an ounce.

TIN

KUALA LUMPUR: The tin price on the Kuala Lumpur Tin Market (KLTM) closed unchanged yesterday at Monday’s level of US$ 20,000 per tonne, dealers said.

A dealer said this was despite the lower tin price on the London Metal Exchange (LME). The tin price on the LME dipped US$ 240 to US$ 19,560 per tonne.

He said the local market was supported by foreign buying interest with the LME feeling the effect of Hurricane Sandy in the United States (US) as it impacted the trading of commodities there and dampened sentiment in the commodities markets.

The New York Mercantile Exchange (NYMEX), a commodity futures exchange was closed as Sandy stormed the US.

On the local front, at the opening, buyers offered 40 tonnes while sellers stood at 45 tonnes.

Turnover increased to 41 tonnes from 25 tonnes on Monday with Japanese, Europeans and locals dominating yesterday’s trade.

The premium price differential between the KLTM and the LME widened to US$ 830 per tonne from US$ 592 per tonne on Monday. – Agencies

Business Times : marketwatch

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