Palm Futures Continue 3-Day Rally

CRUDE

palm oil (CPO) futures prices on Bursa Malaysia Derivatives continued a

three-day rally to close higher yesterday, supported by gains across

the commodity markets, dealers said.

The benchmark third-month contract increased RM30 to close at RM3,393 per tonne.

A

dealer said the market sentiment remained bullish despite a mixed set

of exports figures and concerns that floods in the northern state would

limit the supply of palm oil.

Cargo surveyor Societe Generale de Surveillance reported that export of

Malaysian palm oil products for November 1-10 rose one per cent to

386,762 tonnes from 382,828 tonnes shipped from October 1-10.

Another

cargo surveyor Intertek Testing Services said exports for November 1-10

declined 1.1 per cent to 390,534 tonnes from 395,015 tonnes in the same

period of last month.

Another dealer said the CPO market would

see some correction today following Malaysian Palm Oil Board’s report

that palm oil stocks rose to a nine-month high in October.

At

close, the November 2010 and December 2010 contracts increased RM38 each

to settle at RM3,384 and RM3,396 respectively and February 2011 added

RM27 to RM3,391.

Total volume increased to 29,471 lots from

Tuesday’s 19,963 lots while open interest declined to 72,844 contracts

from 72,951 contracts previously.

On the physical market, November South jumped RM40 to RM3,400 per tonne from Tuesday’s RM3,360 per tonne closing price.

Source : Business Times

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