CPO, rubber and tin all higher

 

CPO FUTURES

CRUDE palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher yesterday supported by renewed interest in commodity markets coupled with continued concerns over the monsoon weather.

Dealers said the weaker US dollar and record gold prices attracted more investors into commodity markets globally.

"Continued heavy rain in central and southern oil palm growing states in the country also encouraged many investors to take on new positions," a dealer said.

On Wednesday, Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services are expected to release palm oil export data for the first 25 days of November.

Dealers, however, expect November exports to be above 1.45 million tonnes.

On the local market, buying interest emerged at the RM2,400 per tonne level aided by supply constrains.

December 2009 increased RM95 to RM2,465 a tonne, January 2010 rose RM88 to RM2,480 a tonne, February 2010 gained RM67 to RM2,486 a tonne and March 2010 added RM84 to RM2,499 a tonne.

Volume rose to 17,372 lots against Friday's 13,093 lots while open interest totalled 95,772 contracts.

On the physical market, November South was higher at RM2,400 per tonne from last Friday's RM2,350.


RUBBER

MALAYSIAN rubber prices closed higher yesterday on concern over supply shortages in major producing countries due to the monsoon weather, dealers said.

They said that rubber output in Thailand and Malaysia were affected by the prolonged rain which was curbing tapping activities, adding that demand was expected to continue due to the tight supply situation.

"This scenario will continue to prompt traders to stock up. Enquiries from China on rubber prices also give a further boost the local rubber market," said one of the dealers.

The dealers expected the price for SMR 20 to increase to 855 sen per kilo this week.

At noon, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 rose 1.5 sen to 841.5 sen per kilo while latex in bulk went up two sen to 527.5 sen per kilo.

The unofficial closing price for tyre-grade SMR 20 added six sen to 845 sen per kilo while latex in bulk gained 3.5 sen to 529 sen per kilo.


TIN

THE price of tin on the Kuala Lumpur Tin Market (KLTM) rose US$100 to US$14,920 a tonne yesterday on strong overseas demand, mainly from European buyers, dealers said.

The increase in the price of the commodity on the London Metal Exchange (LME) by US$120 to US$14,975 per tonne also provided a boost to the local tin market.

At the opening bell, bids outnumbered offers by 135 tonnes to 60 tonnes.

The day's turnover rose 100 tonnes from 50 tonnes on Friday with the participation of Japanese, European and local traders.

The price differential between KLTM and LME narrowed to US$230 per tonne from US$250 per tonne on Friday. - BERNAMA