China, India Demand to Lift CPO Futures

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely

to trade higher next week with increasing demand from China and India,

dealers said.

They said China was reported to have started to stock up vegetable oils before the Chinese New Year in February next year.

A dealer said the La Nina phenomenon had also pushed up the prices on concerns of shortage in supply.

“The phenomenon has resulted in heavy rains and flooding, and is

expected to cause extensive damage to crops in Australia and Asia,” he

said.

He said the CPO price was likely to move close to RM4,000 level next week.

On a Friday-to-Friday basis, January 2011 rose to RM3,730 per tonne

from RM3,570 per tonne, February 2011 increased to RM3,696 from

RM3,547, March 2011 surged to RM3,665 from RM3,503 and April 2011 rose

to RM3,646 from RM3,451.

Volume for the week declined to 80,204 lots from 102,782 lots last

week while open interest was higher at 91,035 contracts from 87,002

contracts previously.

As for the physical market, January shipment CPO rose to RM3,675 per tonne from RM3,570 per tonne last Friday. — Bernama
 
Source : Business Times

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