Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed higher yesterday on concerns that a rising La Nina weather will affect production, dealers said.
The dry weather experienced in the last few months can induce heavier rains or a La Nina weather pattern in palm oil-producing Southeast Asia, said a dealer.
CPO prices will be supported by the rainy weather and buyers from China and Pakistan have already started stocking up for Ramadan, the dealer added.
At the close, CPO futures for August 2010 increased RM16 to RM2,571 per tonne, September 2010 gained RM23 to RM2,528 per tonne, October 2010 added RM10 to RM2,495 per tonne and November 2010 was RM19 higher at RM2,487 per tonne.
Source: Business Times