CPO Futures Close Higher for Second Straight Day
KUALA LUMPUR: Crude palm oil (CPO) futures closed higher for the second day due to expectation of lower production based on lower inventory as envisaged by the Malaysian Palm Oil Board (MPOB) month-to-month report.
Phillip Futures derivatives specialist David Ng said going forward for November and December, the slower production will cause the inventory to be slightly higher in October.
On Monday, MPOB said the CPO production in October declined 0.21 per cent to 1.892 million tonnes from 1.896 million tonnes the previous month.
The report said CPO stocks increased 1.40 per cent to 1.19 million tonnes in October.
At the close, November and December 2014 improved RM29 to RM2,234 and RM2,264 a tonne respectively, January 2015 added RM27 to RM2,265 a tonne, and February 2015 rose RM25 to RM2,269 a tonne.
Volume declined to 37,339 lots from 49,341 lots previously while open interest fell to 261,464 contracts from 274,116 previously.
On the physical market, November South went up RM20 to RM2,260 a tonne. Bernama
Source : New Straits Times