Palm lower despite higher oil prices

CPO FUTURES

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed mostly lower yesterday despite firmer crude oil prices, a dealer said.

“The market sentiment was affected by deepening global recession despite a recovery in crude oil,” the dealer said.

The dealer said the volatile crude oil market is putting more pressure on the palm oil price, adding that mild profit-taking was in place due to the uncertainties.

December 2008 rose by RM6 to close at RM1,456 and January 2009 dwindled by RM8 to RM1,462.

The benchmark month February 2009 was RM8 lower at RM1,460 and March 2009 dipped by RM20 at RM1,460.

Turnover increased to 13,225 lots from 11,897 on Thursday while open interests fell to 92,421 contracts from 93,038 previously.

On the physical market, November South was up RM1,465 from RM1,450 per tonne on Thursday.

RUBBER

MALAYSIAN rubber prices ended lower yesterday in quiet trading, continuing to track the losses on the Tokyo Commodity Exchange amid weak crude oil prices, a dealer said.

He noted that crude oil prices have fallen to US$48 per barrel, the lowest since March 2005, on worsening fears over the economic outlook.

A drop in the crude oil price makes synthetic rubber cheaper. Synthetic rubber is made from crude oil and this reduces the demand for natural rubber.

At noon, the Malaysian Rubber Board official physical price for tyre grade SMR 20, dropped 34 sen to 573 sen per kg while latex in bulk went down 17.5 sen to 433.5 sen per kg.

The unofficial sellers’ closing price for tyre grade SMR 20 slipped 39.5 sen to 552.5 sen per kg while latex in bulk fell 21 sen to 423.5 sen per kg.

TIN

THE Kuala Lumpur Tin Market (KLTM) closed easier yesterday with the price down by US$400 to US$11,500 per tonne, tracking losses on the London Metal Exchange (LME) and a lack of demand, a dealer said.

The LME tin price fell by US$610 to US$11,300 per tonne.

On the local front, bids accounted for seven tonnes compared with offers at 25 tonnes.

Turnover edged up to 25 tonnes from 20 tonnes on Thursday with interests from Japanese, European and local traders.

The price differential between the KLTM and the LME increased to a premium of US$470 per tonne from US$260 per tonne previously. — Bernama