Palm Futures Higher on Hope of Festive Demand

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives

closed higher yesterday with hope of festive demand and concern over the

weather boosting sentiment, dealers said.

“CPO prices hit a four-and-a-half month high yesterday,” said one of the traders.

He

said that soybean prices surged on concern that dry weather would

affect the commodity and this also gave a lift to CPO prices.

“With the Ramadan month approaching, harvesting is expected to slow down

which may lead to a slight fall in this month’s production,” the trader

said.

At close yesterday, CPO futures for August 2010 increased

RM34 to RM2,675 per tonne, September 2010 gained RM39 to RM2,632 per

tonne, October 2010 added RM28to RM2,590 per tonne and November 2010 was

RM30 higher at RM2,585 per tonne.

Volume dropped to 12,945 lots

from 17,244 lots Tuesday and open interest declined to 68,584 contracts

from 69,376 contracts previously.

On the physical market, August South was RM40 higher at RM2,680 per tonne compared to RM2,640 per tonne Tuesday.

Leave a Reply