CPO Futures Surge on Positive News from Sime Darby

CRUDE palm oil futures on Bursa Malaysia Derivatives ended higher yesterday, prompted by positive announcement from the country’s top planter, Sime Darby.

In an interview with Reuters, the company said it would spend RM3 to RM5 billion on its oil palm estates this year as global demand for the vegetable oil grows.

They said the positive palm oil export figures for March 1 to 25 also boosted buying sentiment in the market.

Exports of Malaysian palm oil products for March rose 7.7 per cent to 1,345,124 tonnes from 1,249,390 shipped in February, cargo surveyor Societe Generale de Surveillance reported yesterday.

Another Cargo surveyor Intertek Testing Service reported that Malaysia’s March palm oil exports rose 12.1 per cent from a month ago.

April 2010 added RM37 to RM2,628 a tonne, May 2010 rose RM23 to RM2,565.

June 2010 was up RM11 at RM2,556 and July 2010 increased RM21 to RM2,536.

Overall, volume fell to 14,487 lots from 19,557 lots on Tuesday, while open interest rose to 77,934 contracts from 77,840 previously.

On the physical market, April South added RM30 to RM2,630 a tonne.

Source : Business Times

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