Tokyo corn futures end lowerTokyo corn futures extended early losses to end lower across the board on Friday, led by long-liquidation, following weaker Chicago market overnight and the yen's rebound, traders said. Prices ranged from 120 yen to 200 yen per tonne lower. Benchmark March was off 120 yen at 15,790 yen. Volume was estimated at 29,488 lots. The market started the day weaker, as the easier Chicago market was offset by the yen's weaker tendency. "Trading seesawed in line with the currency market," one trader said. "In the longer-term, sentiment remains bullish on possible impact on the US Crop from the El Nino whether phenomena, but investors are now waiting for fresh incentives," the trader said.
SFE wheat slips
Sydney Futures Exchange (SFE) wheat attracted increased interest on Friday as dry weather raised increasing concern. Only January 1999 traded, selling down by 50 cents to A$181.00 a tonne on a single traded lot. Settlement prices dropped by A$2 to A$4 in near-termcontracts but were steady throughout the rest of the range. Phil Lindsay of Ord Minnett Jardine Fleming Futures said the market was attracting buying interest in futures, as well as in call options and strangles on January/ November options.
Concern was increasing about dry conditions, he said."(This is) making a number of growers and end users very nervous," he said.
Kuala Lumpur palmoil down
Malaysian palmoil futures were lower at midday Friday after speculators who had bought heavily into the market a day earlier decided to sell on a lack of leads. Volume was, however, thin with only 418 lots done in the morning session. Traders said retail players dominated the action while institutions were sidelined. "The overall market is down in line with the products market as there is a fair bit of speculative selling going on," said a trader.
Dealers said the ringgit, a usual factor in the market, has not provide much direction lately due to its narrow trading range against the dollar. At 0400 GMTon Friday, the ringgit was at 3.6650 to a dollar, from 3.6750 on late Thursday.
Malaysia palmoil output may rise
Malaysia's palmoil production in March is expected to rise by five per cent to 630,000 tonnes compared with 601,219 tonnes in February, private crop forecaster Ivan Wong said on Friday. Palm oil stocks at the end of March are projected at 715,000 tonnes against the Palm Oil Registration and Licensing Authority's (PORLA) 736,670 tonnes at end-February, Wong said in his latest report. He also estimated exports in March at 560,000 tonnes compared with PORLA's 523,190 tonnes in February.
Wong said production growth had been slowing down since reaching a peak of 12.7 per cent in the second quarter of last year. "The yields have now turned negative. The average oil extraction rate in Peninsular Malaysia also dropped slightly in March to around the level in January," he said.
Dalian soyabeans dips
Dalian soyabean futures closed down on Friday on short-selling and long liquidationmainly from retail investors as overnight losses on the Chicago Board of Trade (CBOT) intensified pessimistic mood, traders said. The key September 1998 contract ended at 2,692 yuan ($324)per tonne, down 27 yuan from Thursdy's close.
It opened at 2,709, hitting an intra-day high of 2,710, and a low of 2,687 yuan per tonne. "CBOT losses soured market sentiment," one trader said. "The uncertainties of the weekend also pushed investors to cash in." CBOT soyabeans closed Thursday unchanged to five cents perbushel lower, with May down 4-1/4 at $6.52. Dalian soybeans opened lower and moved at low levels formost of the session, traders said.
Marginal rise in cardamom prices
Cardamom prices registered a marginal rise at various auctions across the country during the first week of March on low offerings as compared to February-end prices, but the overall average price was lower than rates in the last season (August 1996-September 1997).
During the first week of March, cardamom average price at theauctions was Rs 249.28 a kg against the average price of Rs 246.73 till February 28, reports from licences auctioneers said. However, the prices were lower than last year's average price of Rs 396.31 a kg. Mumbai continued to fetch the top prices among all auctions centres in the country, despite the rates falling well below the one that prevailed at the start of the season.
Kuala Lumpur rubber mixed
Kuala Lumpur rubber prices remained mixed at midday Friday. Traders said the price of RSS rubber was being somewhat retained due to tighter supply of the material compared with SMR grades. A check with trading houses at noon showed the SMR 20 being offered at 268 cents a kg, SMR L at 320, SMR 10 at 275 and latex at 242, all for April.
The INRO five-day average price dipped to 193.85 Malaysian/Singapore cents a kg on March 19 from 195.77 on March 18. The daily indicator also fell, to 191.00 from 192.75.
Tokyo rubber rebounds
Tokyo rubber futures rebounded from the day's lows to end mostlyfirmer on Friday amid late short-covering due to strength in the spot March contract, Japanese traders said. Prices ranged from 0.4 yen per kg lower to 0.5 yen up. Benchmark August finished up 0.5 yen at 98.2 yen. "Short-covering emerged ahead of the close after the spot March contract proved to be resilient despite oversupply concerns," an analyst at a commodity broker said. Focus is on expiry of the spot March contract on Wednesday next week, they said.
LME copper, aluminium weak
The copper and aluminium weakness on the London Metal Exchange (LME) is expected to continue while buying from the Far East is still unseen, Asian traders said on Friday. "I haven't heard much from Japan recently. Stocks there are high. There is no need for buying now, for any metal," said one Singapore-based trader. The trader noted Asia's standstill in metal trade and bearish sentiment during the regional economic crisis. "There is a limit for fund buying. I think US funds have bought enough," said anothertrader.
Hong Kong gold unchanged
Hong Kong midday spot gold unchanged from the opening, while silver was quoted a shade firmer, dealers said. Bullion was quoted at US$291.60/292.10 per ounce at midday, unchanged from its opening p rices. Spot silver ended at midday quoted at US$5.96/6.01 an ounceafter it opened at US$5.95/6.00. Tael gold at midday was HK$2,692 per tael, down HK$1 from the opening price of HK$2,693 per tael.
Kuala Lumpur tin ends up
Malaysia's tin price rose 20 cents to 19.80 ringgit ($5.40) a kg on Friday on strong buying of the metal by local interests, traders said. An overnight rise on the London Metal Exchange also helped sentiment, they said. "It's more of local demand than anything, because whatever price below 20 (ringgit) will usually be picked by local buyers," said a trader. He said the ringgit, a usual factor in the market's direction, did not make an impact as it was range bound against the dollar. At 0400 GMT on Friday, the Malaysian currency was at 3.6650to a dollar from 3.6750 late on Thursday.
Traders said the closing price of 19.80 ringgit meant alocal premium of $127 a tonne against the overnight price of tin on the London Metal Exchange. The premium for local tin on Tuesday was at $81.
Asian gold demand up
Signs of interest in gold were emerging in Asia as premiums plummeted, but demand in China has disappeared following official moves to bring the domestic industry closer to world standards, dealers said on Friday. "Demand has picked up because prices have taken a hammering," said one dealer in Hong Kong. Sagging prices had seen interbank premiums paying par, with retail premiums at 50/60 cents per ounce, he said. No demand had been seen from China since a recent cut in the official purchase price of gold, dealing sources said.
Singapore oil exports down
Singapore's domestic oil exports fell 4.1 per cent in February to Singapore $1.16 billion year-on-year, the Trade Development Board (TDB) said on Friday. "Domestic exports of oilcontinued to be weak in February," the TDB said in a statement. "The three-month (December to February) moving average percentage change in exports also declined by 12.2 per cent over February 1997 as competition from regional refineries intensified," it said. (Compiled from Reuters & agencies)
In January this year, oil exports were worth S$1.17 Billion, down 24 per cent from January 1997. Singapore's export-orientated refiners, with around 1.2million barrels-per-day (bpd) capacity, have been forced to compete with other regional refining centres in Thailand, Japan and South Korea to find outlets for their oil products.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
