Asian Crude Palm Oil Ends Up On Soyoil, Short Covering

 KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended higher Friday as higher soyoil and a rally in wheat spurred
investors to cover their short positions, trade participants said. 
  The benchmark November contract on the Bursa Malaysia Derivatives exchange
ended MYR28 higher at MYR2,570 a metric ton after moving in a MYR2,546-MYR2,574
range. 
  "Palm prices tracked the rally in some agricultural commodities after news of
Russia extending an export ban into next year," said a trading executive at
Kuala Lumpur-based brokerage OSK Investment Bank. 
  Russia will extend its ban on exports, which covers wheat, flour, barley, rye
and corn to at least next year after a devastating drought destroyed much of the
country's agricultural crops. 
  Traders expect prices to move in tepid trade next week between the
MYR2,500-MYR2,600/ton level due to the upcoming Eid-ul Fitr holidays. 
  They are also awaiting fresh leads from key soybean crop data by the U.S.
Department of Agriculture and production, stocks and export data from the
Malaysian Palm Oil Board likely out in the coming week. 
  "Any gains in prices in the next few days are unlikely to last as the shortage
of oils (for nearby months) is likely temporary," said a senior trading
executive in Singapore. 
  Harvesting activity at plantation estates usually eases during the festive
week as harvesters go on long holidays, leading to a shortage of oils during the
period. 
  In the cash market, palm olein for delivery in November and December traded at
$855/ton and $857.50, with April/May/June at $847.50/ton, FOB Malaysian ports,
said a Singapore-based physical market broker. 
  Cash CPO for prompt shipment was offered MYR10 higher at MYR2,720/ton. 
  CME Group Inc.'s dollar-based November CPO futures were trading $14.25 higher
at $823.75/ton at 1001 GMT. 
  Rupiah-denominated October CPO futures on the Indonesia Commodity and
Derivative Exchange were 1.2% higher at IDR7,565 a kilogram at 1001 GMT. 
  Open interest on the BMD was 69,764 lots, versus 66,548 lots Thursday. One lot
is equivalent to 25 tons. 
  A total of 10,683 lots of CPO were traded versus 16,794 lots Thursday. 
 
Closing BMD CPO futures prices in MYR/ton at 1000 GMT: 
 
Month   Close  Previous  Change   High    Low 
Sep'10  2,698     2,690  Up  08  2,700  2,692 
Oct'10  2,625     2,593  Up  32  2,631  2,602 
Nov'10  2,570     2,542  Up  28  2,574  2,546 
Dec'10  2,560     2,535  Up  25  2,565  2,540 
 
  -By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.
com 
 
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  (END) Dow Jones Newswires
  September 03, 2010 07:02 ET (11:02 GMT)


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