CPO Futures Rise on Short-Covering

CRUDE palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher yesterday on active short-covering.

Dealers

said the market for the commodity was tight due to the lower stocks,

which in turn were caused by lower production of palm oil amid growing

orders from China and India.

“Some importers are resuming

purchases after staying on the sidelines in the past few weeks to take

advantage of the slump in CPO prices,” a dealer said.

March 2011 rose RM59 to RM3,609 a tonne, April 2011 increased RM69 to

RM3,578, May 2011 jumped RM74 to RM3,546 and June 2011 chalked up RM69

to RM3,528

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