Crude Palm Oil Futures Remain Up on Firm Spot Demand

NEW DELHI: Crude palm oil prices rose by Rs 5.80 to Rs 505.50 per 10 kg in futures trade on Tuesday as speculators created fresh positions driven by pick-up in spot market demand.

Palm oil imports by India, the world’s largest buyer, probably jumped to the highest in three months in May as local supplies fell amid expanding demand.

Besides, a firming trend in overseas markets also supported the uptrend.

On the Multi Commodity Exchange, crude palm oil for June delivery rose by Rs 5.80, or 1.16 per cent, to Rs 505.50 per 10 kg, with a trading volume of 164 lots.

Similarly, the oil for delivery in July increased by Rs 5.80, or 1.15 per cent, to Rs 506.60 per 10 kg with a business turnover of 317 lots.

Analysts said fresh positions created by speculators amid pick-up in demand in spot markets mainly led to a rise in crude palm oil prices at futures market.

Meanwhile, the oil climbed 0.50 per cent to $ 784 a tonne on the Malaysia Derivatives Exchange.

Source : The Economic Times

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