Palm Futures Rise 0.9 Percent at Close

MALAYSIAN crude palm oil futures rose 0.9 per cent yesterday along
with other markets after US President Barack Obama’s promises to boost

US jobs and the economy.

However, the combination of ample

global vegetable oils supplies and slowing demand may keep a lid on

prices and prevent further gains, they said.

“We are not out of

the woods yet,” said a trader with a Kuala Lumpur-based brokerage,

adding that huge palm oil stocks in the world’s number 2 grower and

good prospects for South American soy crops will continue to dent

sentiment.

“I think in the near term, the market will consolidate in a range of RM2,400-RM2,550,” said another Malaysian trader.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange

rose RM22 to RM2,451 per tonne. Traded volume was 15,791 lots of 25

tonnes each.

Oil rose towards US$74 (US$1.00 = RM3.40),

rebounding from six-week lows, after Obama’s State of the Union address

and the Fed’s decision to maintain low interest rates revived some

confidence about economic growth.

Global equities also

rallied yesterday as Obama focused on job creation rather than any

concrete details of banking reforms which have spooked financial

markets.

In the Malaysian physical market, palm oil for

January and February delivery was traded at RM2,455-RM2,465 per tonne

in the southern and central regions.

Source : Business Times

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