CPO Futures Up in Line With Steadier Soyaoil

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher yesterday in line with steadier soyaoil prices, dealers said.

They said speculation of lower palm oil production for this month due to the dry weather also supported prices in trading higher.

“It’s pretty much an uneventful day,” said a trader.

“Crude is trading in a positive zone which prompted covering that pushed the market, but the follow-through buying is not there. There is no fresh news to push it a lot higher or lower,” the trader said.

Players were looking for fresh leads from the export number for March 1-25, as well as watching for data on production, traders said.

“We are still keen to see if there is any pick-up (in production) for the second half of the month,” another trader said.

At close, April 2010 rose RM9 to RM2,644 per tonne, May 2010 increased RM20 to RM2,610, June 2010 gained RM21 to RM2,591 and July 2010 added RM22 to RM2,580.

Turnover, however, declined to 11,742 lots from 12,691 lots on Monday and open interests eased to 78,158 contracts from 79,157 contracts previously.

On the physical market, April South increased to RM2,650 per tonne from RM2,630 per tonne.

Source: Business Times

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