Palm Futures Steadier on Supply Concerns

PRICES of crude palm oil (CPO) futures contracts on Bursa Malaysia

Derivatives ended higher yesterday on the back of steady crude oil

price, dealers said.

Concerns on a shortage of supply due to the

rainy season and price rise in commodities generally were also among

contributing factors to the positive trend, a dealer said.

“The

market should remain steady as festival period buying remains strong

with demand coming from China, India, Pakistan and Indonesia,” the

dealer said.

At close, CPO futures contracts for August 2010 and September 2010 rose

RM14 each to close at RM2,585 and RM2,542 a tonne respectively, while

October 2010 and November 2010 both were RM19 higher at RM2,514 and

RM2,506 a tonne respectively.

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