KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday, even as profit-taking activities were noted in the morning session.
Production traditionally rises in the second half of the year and peaks in October, before slowing down towards the end of the year as palm oil trees rest and monsoon rains complicate harvesting.
But a group of planters on Tuesday estimated output fell by 10.5 per cent in the first 20 days of October, fuelling expectations that end-stocks would stay below the two million tonne mark this year despite earlier bearish forecasts warning of surging stocks and production.
"The news about dropping production in October is the reason," said a trader.
Spot month November 2013 gained RM31 to RM2,488, December 2013 added RM24 to RM2,481, January 2014 rose RM27 to RM2,482 and February 2014 increased RM29 to RM2,482 a tonne.
Volume fell to 32,615 lots from 37,964 lots, while open interest eased to 184,980 contracts from 193,287 contracts.
On the physical market, November South was up RM30 to RM2,480 a tonne.OILLONDON:
US crude fell below US$97 (US$1.00 = RM3.23) a barrel to its lowest since July yesterday, outpacing a smaller drop in Brent futures, pressured by ample supplies and expectations of a further inventory buildup in the United States.
Brent crude fell 23 cents to US$109.74 a barrel by 1227GMT. US crude fell US$1.73 to US$96.57 and earlier reached US$96.32, its lowest since July 1.
"The weakness in the Brent/WTI spread reflects refinery maintenance and growing crude stocks in the US," Jefferies Bache oil broker Christopher Bellew said.RUBBERKUALA LUMPUR:
Malaysian rubber prices closed lower yesterday due to lack of demand for the commodity, dealers said.
The bearish sentiment was also influenced by lower rubber futures prices on the Tokyo Commodity Exchange.
"Market fundamentals are weak and prices are heading downwards," said a dealer.
At noon, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 was 7.5 sen lower at 740.50 sen a kg and latex-in-bulk shed two-and-a-half sen to 531.50 a kg.
The unofficial closing price for tyre-grade SMR 20 dropped 15 sen to 732.50 sen a kg and latex-in-bulk decreased 4.5 sen to 529 a kg.
Gold retreated from four-week highs on Wednesday as investors cashed in gains, with a rally sparked by weaker-than-expected U.S. non-farm payrolls data running out of steam.
Spot gold was down 0.6 per cent at US$1,332.46 an ounce at 1359GMT, while US gold futures for December delivery were down US$9.70 an ounce at US$1,332.70.
Silver was down 0.2 per cent at US$22.56 an ounce.
Spot platinum was down 0.6 per cent at US$1,434.99 an ounce, while spot palladium was down 0.7 per cent at US$745.97 an ounce.TINKUALA LUMPUR:
The tin price on the Kuala Lumpur Tin Market (KLTM) rose US$350 a tonne yesterday to US$23,200 a tonne in tandem with the higher prices on the London Metal Exchange (LME), dealers said.
On the LME, the metal rose US$445 to US$23,250 a tonne. Trading on the KLTM was dominated by European, Japanese and locals.
At the opening bell, bids stood at 107 tonnes while sellers offered 30 tonnes. Turnover declined to 32 tonnes from 37 tonnes 9on Tuesday.
The premium between the KLTM and the LME narrowed to US$350 a tonne from US$445 a tonne on Tuesday. - Aencies