CPO Futures End Firmer On Short-Covering

Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives ended slightly firmer on short covering yesterday, despite lower crude oil prices and possibly lower exports for the first half of December, dealers said.

According to a senior palm oil trader, the price should go down to RM2,300 per tonne by end of the month before it could see robust trading again.

In New Delhi yesterday, London-based Dorab Mistry, whose forecasts are keenly watched, said at an industry conference that CPO futures in Malaysia are expected to rise to RM2,800-3,000 per tonne by March.

“I believe CPO prices must rise very soon. CPO futures will trade between RM2,800-3,000 by March 2010,” he said.

At the close, December 2009 was unchanged at RM2,420 per tonne while January 2010 gained RM41 to RM2,493 per tonne.

February 2010 rose RM37 to RM2,525 per tonne and March 2010 increased RM40 to RM2,530 per tonne.

However, turnover was reduced at 8,251 lots from 11,673 lots previously, and open interest declined to 84,371 contracts from 85,135 contracts previously.

On the physical market, December South added RM5 to settle at RM2,445 per tonne. Source: Business Times

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