CPO Futures Ended Higher on Speculative Buying

KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended higher for the third consecutive day yesterday on speculative buying.

Interband Group Sdn Bhd senior palm oil trader Jim Teh said that although the prices moved up in the last few days, volume was still low. He said prices were expected to rise considering that the cost of production was projected at between RM1,200 and RM1,500 a tonne.

Spot month April and nearby month May 2012 gained RM39 each to end at RM3,639 and RM3,613 a tonne, respectively. June 2012 rose RM46 to RM3,604, while July 2012 gained RM45 to RM3,577.

Volume fell to 18,810 lots from 20,806 lots on Thursday, while open interest slipped to 120,728 contracts from 121,237.

On the physical market, April South rose to RM3,570 a tonne from RM3,550 a tonne on Thursday. Bernama

Source: Business Times

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