Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher yesterday because of speculative buying on fear of Europe slipping into a double-dip recession, dealers said.
Interband Group Sdn Bhd senior palm oil trader, Jim Teh, said that although the prices has moved up the last few days, volume was still low.
He said CPO prices were expected to stay at current levels considering that the costs of production were between RM1,200 and RM1,500 per tonne.
Another trader said the market also expected the data for the first twenty days of July to be released by Intertek Testing Services and Societe Generale de Surveillance today to be friendly.
He said the market was concerned about lower yield in US soyabean because of hot season.
“The situation will benefit palm oil prices which move in tandem with soyabean prices,” he said.
August 2010 rose RM11 to close at RM2,504 per tonne, September added RM4 to RM2,474, October increased RM5 to RM2,454 and November perked by RM4 to RM2,449.
Source: Business Times