Palmoil HQ Crude Palm Oil Ends Down On Profit-Taking, Crude

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Monday, easing from last week's rally as supportive leads from higher exports were offset by profit-taking, trade participants said.

The benchmark January contract on the Bursa Malaysia Derivatives ended MYR20 lower at MYR2,218 a metric ton, after moving in a narrow MYR2,205-MYR2,235/ton range.

Prices eased off towards the end of trade Monday, tracking lower soyoil and crude futures in Asian trade.

The lack of buying interest in the cash market also damped sentiment in futures trading, as prices were off intraday highs.

"Many investors were liquidating positions to take profits after last week's run-up in prices. But prices were able to hold above MYR2,200 as a rise in exports gave some support," said a trading executive from a Kuala Lumpur-based commodities brokerage.

Cargo surveyor Intertek Agri Services estimated Malaysia's palm oil exports during the Oct. 1-25 period at 1.12 million tons, up 16% versus a month earlier.

Another surveyor, SGS (Malaysia) Bhd., estimated the numbers at 1.11 million tons, up 6.8%.

At 1013 GMT, New York Mercantile Exchange light, sweet crude oil for December delivery was trading 33 cents lower at $80.17 a barrel.

CPO prices are likely to move in a MYR2,150-MYR2,300 range in the near term, said a Singapore-based trading executive.

Meanwhile, an India-based senior federal official said since August, seven Indian states have placed import orders through state-run trading companies for 346,070 tons of edible oil, including palm oil, to boost domestic supplies.

Andhra Pradesh, Tamil Nadu, Maharashtra, West Bengal, Himachal Pradesh, Sikkim and Haryana will import edible oil in tranches through March 2010 to support government welfare programs.

Nearly 35,000 tons have already been sent to the states as of mid-October, the official said.

The state firms will import mainly refined, bleached and deodorized palm olein from Malaysia and Indonesia at an average price of around $800/ton.

Earlier this month, the Solvent Extractors' Association of India put September palm oil imports at 544,091 tons, up from 334,334 tons a year earlier.

The rise in imports by India, one of the world's biggest buyers of edible oils, may boost the global prices of vegetable oils.

In the cash market, cash palm olein for January/February/March shipment traded at $700/ton, free on board Malaysian ports, a Singapore-based trading executive said.

Cash CPO for prompt shipment was offered MYR20 lower at MYR2,220/ton.

A total of 9,918 lots of CPO were traded on the BMD, versus 13,687 lots Friday.

The open interest stood at 82,582 lots Monday, down from 83,313 lots. One lot is equivalent to 25 tons.