CPO Futures Rise in Anticipation of Stock Drawdown

CRUDE palm oil futures (CPO) on Bursa Malaysia Derivatives closed
mostly higher yesterday in anticipation of a drawdown in palm oil

inventories, dealer said.

Some investors have raised offer prices

due to expectation of bullish data from the Malaysian Palm Oil Board

which is scheduled to be released next Wednesday, they said.

The

higher prices are supported by expectation of lower output for the

January period, said one of the dealers.


Earlier, the Malaysian Palm Oil Council said that CPO was expected to

trade between RM2,500 and RM2,700 per tonne over the next three months

due to floods in Sabah and strong exports in January.

At today’s

close, the February 2010 contract gained R156 to RM2,524 per tonne,

March 2010 increased RM15 to RM2,519 per tonne, April 2010 added RM12 to

RM2,510 per tonne, and May 2010 was RM6 higher at RM2,501 per tonne.

Turnover

dropped to 14,814 lots from 19,781 lots on Wednesday and open interest

rose to 77,430 contracts from 75,404 contracts previously.

On the

physical market, February South declined to RM2,510 per tonne from

RM2,520 per tonne on Wednesday.

Source : Business Times

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