Crude Palm Oil (CPO) closed higher

Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher yesterday supported by renewed interest in commodity markets coupled with continued concerns over the monsoon weather.

Dealers said the weaker US dollar and record gold prices attracted more investors into commodity markets globally.

“Continued heavy rain in central and southern oil palm growing states in the country also encouraged many investors to take on new positions,” a dealer said.

On Wednesday, Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services are expected to release palm oil export data for the first 25 days of November.

Dealers, however, expect November exports to be above 1.45 million tonnes.

On the local market, buying interest emerged at the RM2,400 per tonne level aided by supply constrains.

December 2009 increased RM95 to RM2,465 a tonne, January 2010 rose RM88 to RM2,480 a tonne, February 2010 gained RM67 to RM2,486 a tonne and March 2010 added RM84 to RM2,499 a tonne.

Volume rose to 17,372 lots against Friday’s 13,093 lots while open interest totalled 95,772 contracts. On the physical market, November South was higher at RM2,400 per tonne from last Friday’s RM2,350. Source: Business Times

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